Stock Futures Climb as Tame CPI Data Helps AI Trade Return

Futures on the Dow Jones Industrial Average (DJI), S&P 500 Index (SPX), and Nasdaq-100 (NDX) look ready to move past the week's choppy start. Upbeat earnings reports from CoreWeave (CRWV) and Super Micro Computer (SMCI) got the ball rolling on the AI infrastructure front, as investors rotated back into the volatile sector. July's consumer price index (CPI) did the rest, rising 0.1% last month and 3.4% for the year, both in line with expectations. The muted report sent bond yields lower across all timeframes.   

Continue reading for more on today's market, including:

• Senior Quantitative Analyst Rocky White on market momentum of outperformers.
• From our Substack: on hot streaks and their sustainability.
• Plus, CAVA's big beat; and two AI adjacent companies ready to rally after earnings.

5 Things You Need to Know Today

1. The Cboe Option Exchange saw roughly 2.4 million call contracts and 1.5 million put contracts traded on Tuesday. The single-session equity put/call ratio climbed to 0.61, while the 21-day moving average remained at 0.58. 
2. Cava Group Inc (NYSE:CAVA) stock is 15% higher ahead of the bell, after the fast casual chain reported a top-line beat for the second quarter. CAVA stock is bouncing off $60, but still nursing a 26.1% year-over-year deficit heading into today.
3. Nebius Group NV (NASDAQ:NBIS) stock is also up 15% before the open, after the Dutch-based neocloud company reported a slimmer-than-expected loss alongside a revenue beat. Nebius stock is 130.8% higher on the year going into today.
4. The shares of Lumentum Holdings (NASDAQ:LITE) are up 8.3% in electronic trading, after the photonics concern reported a beat-and-raise for the fiscal fourth quarter. Five analysts have hiked their price targets in response, the best coming from Raymond James to $1,036. Lumentum stock is up over 613% in the last 52 weeks.
5. Tech earnings highlight another busy week on Wall Street.

Samsung Powers South Korea's Kospi

Asian markets finished mostly higher on Wednesday as a renewed rally in semiconductor stocks boosted regional sentiment ahead of key U.S. inflation data. South Korea's Kospi surged 3.7%, led by strength in Samsung Electronics, while Japan's Nikkei added 0.8%. China's Shanghai Composite edged 0.3% higher, and Hong Kong's Hang Seng slipped 0.8%.

European markets are mixed today as investors weigh corporate earnings amid heightened geopolitical tensions. At last check, Germany's DAX is up 0.5%, London's FTSE 100 sits flat, and France's CAC 40 has slipped 0.2%.