Nasdaq Dorsey Wright

- Index futures are higher this morning with the Nasdaq leading to the upside, up around 70 bps.
- Stocks were down slightly yesterday as the S&P 500 ([SPX]) dropped 32 bps, the Nasdaq-100 ([NDX]) fell 33 bps, and the Dow ([.DJIA]) lost 34 bps.
- While the broad indices were down, semiconductors advanced as the iShares Semiconductor ETF ([SOXX]) gained a little under 1%.
- International equities were up modestly as the iShares MSCI Emerging Markets ETF ([EEM]) gained 40 bps and the and the iShares MSCI EAFE ETF ([EFA]) was up seven bps.
- July CPI is due out this morning with a consensus estimate of 10 bps for headline and 20 bps for core inflation last month. The futures market is currently pricing in about a 75% chance of at least one rate increase by the end of the year. A low CPI reading could reduce those expectations while a high reading could have the opposite effect.
- Cisco Systems ([CSCO]) will report earnings after close this afternoon. The stock is a 5 for 5’er and sits on a buy signal on its default chart after breaking a double top at $122 last week. Initial support can be found at $108, while overhead resistance sits at $130, CSCO’s all-time high.