U.S. stock futures are slightly higher in premarket trading led by gains in chipmakers, after a rally yesterday fueled by softer-than-expected inflation data.

Stocks climbed Tuesday after a cooler-than-expected CPI inflation report bolstered hopes that the Federal Reserve may not need to raise interest rates as aggressively this year. Year over year CPI came in at 3.5% and month over month was down 0.4%, both below the expected 3.8% and -0.2% respectively.

Oil prices are higher at roughly $79.60 a barrel as U.S. forces carried out another round of strikes against Iran and the U.S. reinstated a naval blockade on Iranian ports near the Strait of Hormuz.

Paypal (PYPL) was the strongest performer in premarket trading, up more than 18%, after Stripe and private equity firm Advent International made a joint offer to acquire the payments company for $60.50 per share or over $53 billion, according to Reuters. Investor focus will be on more inflation data with the PPI due this morning and another round of earnings. 

Snapshot (as of 8 AM ET)

• Oil (/CL) – U.S. oil futures are up 0.43% to near $79.68 per barrel
• Gold (/GC) – Gold futures are down 0.62% to 4,044.40
• Bitcoin (/BTC) – The cryptocurrency futures are up 0.10% to 64,780
• VIX – The CBOE Volatility Index is down roughly 0.55% to 16.41
• U.S. Dollar ($DXY) – The dollar index is up 0.09% to 100.017

Biggest Premarket Movers (as of 8 AM ET)

Advancers:

• PayPal Holdings (PYPL) 18.85%
• BlackRock (BLK) 2.88%
• Applied Materials (AMAT) 2.79%
• Intel (INTC) 2.40%
• KLA (KLAC) 2.36%

Decliners:

• Pentair (PNR) -18.35%
• Elevance Health (ELV) -6.98%
• Centene (CNC) -2.50%
• UnitedHealth Group (UNH) -2.16%
• SanDisk (SNDK) -2.04%

Economic Data (ET)

• 7:00 AM: MBA Mortgage Application
• 8:30 AM: PPI – Final
• 8:30 AM: Empire State Manufacturing Index
• 8:45 AM: Fed’s Williams speaks
• 10:00 AM: Fed Chair Warsh testimony
• 10:30 AM: Oil inventories
• 1:00 PM: Fed’s Cook speaks
• 2:00 PM: Beige Book

Notable Earnings

• Premarket: ASML, BLK, CTAS, CAG, ELV, FHN, JNJ, MTB, MS, PNC, PGR, BNY
• Postmarket: JBHT, UAL
• Premarket Tomorrow: ABT, CFG, GE, MAN, PLD, STT, TSM, USB, UNH, WIT
• Postmarket Tomorrow: AA, ISRG, NFLX

Upgrades/Downgrades

• Texas Capital upgrades AMC Entertainment (AMC) to Buy from Hold
• Guggenheim upgrades Digital Realty (DLR) to Buy from Neutral
• Morgan Stanley upgrades Cava Group (CAVA) to Overweight from Equal Weight
• Oppenheimer downgrades IBM (IBM) to Perform from Outperform
• Morgan Stanley downgrades Travelers (TRV) to Underweight from Equal Weight
• UBS downgrades Allstate (ALL) to Neutral from Buy

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