LIVE MARKETS-US stock futures remain red after PPI, retail sales

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US STOCK FUTURES REMAIN RED AFTER PPI, RETAIL SALES

U.S. equity index futures are negative, while not showing much reaction to the November Producer Price Index (PPI) and November Retail Sales data.

E-mini S&P 500 futures EScv1 are now down around 0.40% vs. a loss of around 0.35% just before the data came out. The U.S. 10-Year Treasury Yield US10YT=RR is now around 4.16%. It was around 4.16% just before the numbers came out. The yield ended Tuesday at 4.171%.

November headline PPI on a month-over-month basis came in at 0.2% vs. a 0.2% estimate. The year-over-year print was 3.0% vs. a 2.7% estimate. The month-over-month ex-food/energy reading was 0.0% vs. a 0.2% Reuters Poll. The year-over-year ex-food/energy number was 3.0% compared with the 2.7% estimate.

November retail sales month-over-month came in at 0.6% vs. a 0.4% estimate. Ex-autos month-over-month came in at 0.5% vs. the Reuters Poll calling for 0.4%.

According to the CME's FedWatch Tool, the probability that the Fed sits on its hands and leaves its current target rate of 3.50%-3.75% unchanged at its January 27-28 FOMC meeting is unchanged at around 97% vs. just before the data was released. The chance that the FOMC cuts rates by 25 basis points is steady at 3%.

Interest rate probabilities are now pricing in a total of 53.4 basis points of cuts through December 2026 vs. 54.0 basis points just before the numbers came out.

S&P 500 .SPX sector SPDR ETFs are mixed in premarket trading. Tech XLK.P, down around 0.7%, is taking the biggest hit. Energy XLE.P, up about 0.5%, is posting the biggest gain.

The State Street SPDR S&P banking ETF KBE.P is down around 0.5%. The State Street SPDR Retail ETF XRT.P is up around 0.1%.

December existing home sales are due at 10 a.m. ET. The estimate is for 4.21 million vs. a prior read of 4.13 million.

Here is a premarket snapshot from around 8:55 a.m. ET:

(Terence Gabriel)

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