What to Watch in the Day Ahead - Tuesday, August 12

The consumer price index (CPI) data will be closely watched to assess if President Donald Trump's tariff deluge is fuelling more price hikes. The Labor Department's Bureau of Labor Statistics is expected to report that the CPI likely rose 0.2% in July, after a 0.3% increase in June. Annually, CPI is expected to climb 2.8%, compared with a 2.7% gain in the prior month. Core CPI, which excludes volatile food and energy components, is expected to have increased 0.3% in July, after rising 0.2% in June. On an annual basis, core CPI is projected to rise 3%, following a 2.9% increase previously. Separately, the Treasury Department is set to report that the July budget deficit was likely to be around $140 billion after a $27 billion surplus reported for June.

On the Fed watch, Kansas City Fed President Jeffrey Schmid is scheduled to speak on monetary policy and the economic outlook before the Southern Economic Development Council Annual Conference in Oklahoma. (1030/1430) Richmond Fed President Thomas Barkin is expected to speak on ‘Why the Consumer Matters’ before the Health Management Academy in Chicago. (1000/1400)

Turning to the earnings calendar, Cardinal Health will report fourth quarter results before markets open. Investors will look out for performance at its specialty business and any comments on impact from President Trump's tariff announcements.

Stablecoin firm Circle is reporting its first results after a blowout IPO. Analysts are likely to scrutinize growth trends to determine whether the current valuation is warranted.

Smithfield Foods, the biggest U.S. pork processor, reports quarterly results as President Donald Trump's trade tariffs have slowed sales of American agricultural goods to China. For the first half of the year, total U.S. pork exports were down 4% from last year, while sales to China fell 19%. China, the world's biggest pork consumer, imposes a 57% tariff on U.S. pork. However, Smithfield's hog production business has benefited after the company reduced the number of hogs it owns and shifted to buying more hogs from other producers.

Sportswear maker On Holding is expected to report a rise in second-quarter revenue, aided by strong demand for its shoes and sportswear. Investors will look out for comments on annual forecasts, tariff impacts and new products.

In Canada, the statistics agency is set to report the value of building permits likely fell 3.4% in June after a 12% rise in the previous month.

And finally, Brazil's inflation, as measured by the IPCA index, in July is likely to be at around 5.33% on an annual basis. On a monthly basis, the IPCA index is likely to have risen by 0.37% in the month.