Disabled futures, Apple’s iPhone 16 launch, Oracle results

Investing.com — U.S. stock futures were lower on Tuesday, as traders braced for key U.S. inflation data later in the week and tried to gauge the outlook for the Federal Reserve’s monetary policy. Apple (NASDAQ: ) is unveiling its latest AI-enhanced iPhone, while Oracle (NYSE: ) topped first-quarter earnings estimates, sending the cloud company’s stock sharply higher before the opening bell.

1. Disabled futures

U.S. stock futures traded largely around the flat line on Tuesday, suggesting a reversal from gains posted on Wall Street in the previous session, as investors eyed an upcoming inflation report and potential Federal Reserve interest rate cuts.

By 03:42 ET (07:42 GMT), the contract and were largely unchanged and down 33 points, or 0.2%.

The major averages rose on Monday as traders hunted for bargains after a sell-off the previous week, fueled in part by a weaker-than-expected August jobs report and sluggish manufacturing data.

Markets are trying to gauge the outlook for the Fed’s monetary policy following the numbers, with a cut in borrowing costs at the central bank’s September 17-18 meeting now all but guaranteed. However, it remains uncertain whether policymakers will implement a cut of 25 basis points or 50 basis points. More clarity could come on Wednesday, when the latest US consumer price index — a key measure of inflation — is due to be released.

In individual stocks, shares of Boeing (NYSE: ) rose after the embattled planemaker reached a tentative labor agreement with its largest union, while Palantir (NYSE: ) and Dell Technologies (NYSE: ) both rose after it was announced that both firms would join. reference point on September 23.

2. Apple unveils AI-enhanced iPhone 16

Apple shares were mostly flat in extended trading after the tech giant unveiled the latest iterations of its flagship iPhone on Monday, with analysts saying the new AI-powered features held no big surprises.

The Cupertino group announced a number of improvements to its iPhone 16, including improvements to its voice assistant Siri and a number of customizations to the smart camera aimed at professional video editing.

Analysts said the new iPhones and AI features were largely in line with expectations set by Apple’s earlier unveiling of its AI push plans, dubbed “Apple Intelligence.” But some analysts have warned that the new features will be rolled out gradually, possibly deterring early buyers, especially amid stiff competition from rivals such as Samsung (KS:) and Huawei.

Apple is counting on the iPhone 16, which goes on sale on September 20, with pre-orders available on Friday, to help revive reported sales of the device.

3. Oracle tops quarterly forecasts

Oracle shares rose sharply in after-hours trading after the group reported better-than-expected fiscal first-quarter results on strong demand for its cloud business.

The Texas-based cloud services company also said it has signed a partnership with Amazon (NASDAQ: ) Web Services that will allow customers to access Oracle Autonomous Database and Oracle Exadata Database Service within AWS.

Oracle posted adjusted earnings per share (EPS) of $1.39 on revenue of $13.3 billion in the three months ended Aug. 31. Analysts polled by Investing.com had expected EPS of $1.33 on revenue of $13.23 billion.

Total remaining performance obligation, a key measure of recorded revenue, was $99 billion, up 53% from the year-ago period.

For the second quarter, the company projected revenue growth of 8 percent to 10 percent, beating analysts’ midpoint estimates of 8.72 percent, according to LSEG data cited by Reuters.

4. Chinese exports grow more than expected in August

Exports from China rose more than expected in August, potentially indicating that companies are increasing orders ahead of expected tariffs from a number of trading partners.

The country’s outbound shipments rose 8.7 percent year-on-year, beating expectations for 6.5 percent and accelerating from a 7 percent increase seen in July, according to government data. It was the fastest rate since March 2023.

However, imports expanded 0.5 percent, missing estimates of 2 percent and slowing from 7.2 percent in July, suggesting domestic demand remains sluggish in the world’s second-largest economy.

The figures suggest firms may try to freeze orders early amid signs that China could face rising foreign tariffs. Analysts at Capital Economics said in a note that exports are “likely to remain strong in the coming months” as “more barriers are raised against Chinese goods”.

5. Oil splashes

Oil prices fell in European trade on Tuesday as worries about weak domestic demand in China outweighed the possible impact of Tropical Storm Francine on US oil production.

U.S. crude for November was down 0.4 percent at $71.53 a barrel, while West Texas Intermediate crude futures were down 0.4 percent at $67.61 a barrel by 3:33 a.m. E.T. Both benchmarks settled higher on Monday.

A lot of oil companies, including ExxonMobil (NYSE: ), Shell (LON: ) and Chevron (NYSE: ), is moving to halt production and refining activities in the Gulf of Mexico due to Tropical Storm Francine. The storm is expected to strengthen in the coming days, according to the National Hurricane Center.

But sentiment was hurt by a string of weak economic readings from China, which raised fears about tepid growth in the world’s top oil importer.