【US Pre-Market】PPI in Focus After CPI Cools; Cisco Drops Over 6%, Applied Materials Earnings in Spotlight

TradingKey - On Thursday, August 13 ET, futures on the three major US stock indices rose slightly in premarket trading as the market awaited US July PPI and initial jobless claims data. In the previous session, mild CPI and AI earnings reports drove a rebound in US equities, pushing the S&P 500 Index close to record highs; however, ahead of the PPI release, investors remained cautious in weighing the balance among inflation, interest rates, and AI valuations.

As of press time, Dow futures rose 0.26%, S&P 500 futures gained 0.18%, and Nasdaq 100 futures added 0.06%.

Performance of three major US stock index futures, Source: Investing

In commodities, gold (XAUUSD) pulled back slightly to around $4,390; international oil prices fell back, with WTI (USOIL) crude dropping to around $81.6 and Brent crude easing to around $87.3. Although uncertainty remains over Strait of Hormuz negotiations, demand forecast cuts by OPEC and the IEA have weakened the support for oil prices from supply risks.

In cryptocurrencies, Bitcoin (BTC) hovered around $63,600. Mild CPI failed to significantly boost crypto assets, and the market continues to await PPI and retail sales data to further confirm the US economic and policy path.

Market Moves

Cisco (CSCO) fell over 6% in pre-market trading. The company's fourth-quarter revenue reached $17.3 billion, up 18% year-over-year, and adjusted earnings per share were $1.22, both beating market expectations; full-year AI infrastructure orders reached $9.3 billion. However, its non-GAAP gross margin fell to 66.3%, down from the same period last year, as the market grew concerned that a rising share of AI hardware shipments might compress profit margins.

Coherent (COHR) fell over 5% in pre-market trading. Shares came under pressure after the company released its earnings report. Although AI optical communications demand remains a market focal point, investors significantly raised the performance bar for optical modules and the optical communications chain following Lumentum's surge in the previous trading session, leading to profit-taking after the report.

Applied Materials (AMAT) rose nearly 1% in pre-market trading. The company will report earnings after the market close today, with market attention focused on how AI chips, advanced packaging, and fab capital expenditures boost semiconductor equipment orders. The stock was up about 0.5% pre-market, showing that investors remain modestly optimistic ahead of the earnings release.

The memory sector showed mixed performance in pre-market trading. Micron Technology (MU) rose slightly, SanDisk (SNDK) gained nearly 1%, Western Digital (WDC) was roughly flat, and Seagate Technology (STX) fell over 1%. Demand for AI server storage continues to support the sector's long-term thesis, but strong prior gains have heightened pre-market volatility for individual stocks.

Market News

The US July PPI will be released today. According to the US Bureau of Labor Statistics schedule, the July PPI will be released at 8:30 Eastern Time on August 13. Markets expect core PPI to rise 0.3% month-on-month, up from 0.2% in June. PPI components will affect market assessments of PCE inflation.

US July CPI cooled moderately. Data from the US Bureau of Labor Statistics showed that July CPI rose 0.1% month-on-month and 3.4% year-on-year, while core CPI rose 0.2% month-on-month and 2.5% year-on-year. Energy prices fell 1.5% month-on-month, helping ease market concerns over a short-term re-acceleration of inflation.

OPEC and the IEA downgraded oil market demand expectations. OPEC once again lowered its global oil demand growth forecast for 2026, and the IEA also expects high oil prices and uncertainties surrounding the Middle East conflict to weigh on demand. Meanwhile, reopening talks for the Strait of Hormuz have yet to see a clear breakthrough, and supply risks have not fully receded.

Applied Materials' post-market earnings will test semiconductor equipment demand. Applied Materials will report its earnings after the market close today, as investors focus on the extent to which AI chips, advanced packaging, memory expansion, and demand from the Chinese market support semiconductor equipment orders.

Key Data and Events Preview

At 8:15 ET on August 13, Cleveland Fed President Hammack speaks.

At 8:30 ET on August 13, the U.S. releases July PPI and weekly initial jobless claims.

At 8:40 ET on August 13, Richmond Fed President Barkin speaks.

At 13:00 ET on August 13, the U.S. releases 30-year Treasury auction results.

After market close on August 13 ET, Applied Materials (AMAT) reports earnings.