Wall Street rate-hike fright International markets plunge; futures lower in early trading. Concerns about rate hikes rise ahead of key economic reports and Bernanke's latest comments.
June 13, 2006: 6:23 AM EDT
NEW YORK (CNNMoney.com) - Stocks looked to be under pressure early Tuesday following a strong sell-off in overseas markets ahead of some key U.S. economic reports and new remarks due from Federal Reserve Chairman Ben Bernanke.
U.S. stock futures were down in early trading, indicating a lower open for U.S. markets, ahead of 8:30 a.m. retail sales and Producer Price Index reports from the federal government.
The PPI will get particular attention from investors and economists who are on Fed watch, as they look for clues as to whether the central bank will keep raising rates in order to battle inflation pressures. Economists surveyed by Briefing.com are looking for a 0.5 percent rise in May in the measure of wholesale prices, down from a 0.9 percent gain in April. The so called core PPI, which strips out volatile food and energy prices, is estimated to be up 0.2 percent, following a 0.1 percent rise in April.
Retail sales are forecast to be flat after a 0.5 percent in April. Excluding auto sales, retail sales are expected to be up 0.5 percent, following a 0.7 percent April increase.
Bernanke is due to speak on consumer issues at 11 a.m. ET at the Library of Congress. The chairman avoided any comments about monetary policy when speaking about banking regulation Monday evening.
Major markets closed sharply lower in Asia, on rising concerns of more Fed hikes slowing the U.S. economy. Japan's Nikkei fell 4.1 percent, its biggest one-day decline in two years. Major European markets were sharply lower in early trading as well.
DOW Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
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