Stocks Mixed Ahead of Inflation Data

U.S. stocks are trading mixed in pre-market action, with the markets anticipating tomorrow's start of a flood of July inflation data. Equities are trading cautiously while also digesting a warning from Micron Technology and a miss from Take-Two Interactive Software. The economic calendar was mixed, as small business optimism improved modestly from multi-year lows, while Q2 productivity continued to drop and unit labor costs remained severely elevated. Treasuries are losing ground to lift yields, and the U.S. dollar is seeing some pressure. Crude oil prices are gaining ground, along with gold. Asia finished mixed and Europe is also diverging as the markets tread with caution ahead of the U.S. inflation data as monetary policies remain in focus.

As of 8:57 a.m. ET, the September S&P 500 Index future is 8 points below fair value, the DJIA future is 19 points above fair value, and the Nasdaq Index future is 71 points south of fair value. WTI crude oil is increasing $1.34 to $92.10 per barrel and Brent crude oil is gaining $1.27 to $97.92 per barrel. The gold spot price is rising $4.30 to $1,809.50 per ounce. Elsewhere, the Dollar Index is decreasing 0.4% to 106.06.

Micron Technology Inc. (MU $61) is falling after the memory chip company noted that industry demand for DRAM and NAND have declined and it expects a challenging market environment for Q4 2022 and Q1 2023. The company noted macroeconomic factors and supply chain constraints, which has seen a broadening of customer inventory adjustments.

Take-Two Interactive Software Inc. (TTWO $126) reported adjusted fiscal Q1 earnings of $0.71 per share, below the $0.87 FactSet estimate, as revenues rose 36.0% year-over-year to $1.1 billion, compared to the Street's forecast of $1.2 billion. The video game publisher issued full-year earnings and bookings guidance that came in well below expectations, including that impact of its combination with Zynga.

Q2 earnings season is heading down the home stretch, and of the 446 S&P 500 companies that have reported thus far, roughly 63% have topped revenue forecasts and approximately 75% have bested profit projections, per data compiled by Bloomberg. Compared to last year, revenue growth is tracking to be up 14.9% and earnings are 8.7% higher.