Futures Muted, Apple’s iPhone 16 Launch, Oracle Earnings

U.S. stock futures showed little movement on Tuesday as traders prepared for important inflation data later in the week while trying to assess the Federal Reserve’s monetary policy prospects. Apple introduced its latest AI-enhanced iPhone, and Oracle’s first-quarter earnings exceeded expectations, leading to a significant increase in its share price before the market opened.

1. Futures Show Little Change

U.S. stock futures hovered around the flatline on Tuesday as investors focused on an impending inflation report and potential interest rate reductions by the Federal Reserve.

By 03:42 ET, major contracts were largely unchanged, and the index had declined by 33 points, or 0.2%.

Main averages rose on Monday as traders sought opportunities following a sell-off driven partly by a weaker-than-expected jobs report for August and sluggish manufacturing data.

Markets are trying to interpret the implications of these figures for Fed policy, with a rate cut at the central bank’s upcoming meeting expected. However, it remains unclear whether the cut will be 25 or 50 basis points. More insight may be offered on Wednesday when the latest consumer price index is scheduled for release.

In stock news, Boeing shares rose after the company reached a tentative labor agreement with its largest union, while Palantir and Dell Technologies saw gains following their announcement of joining the benchmark index on September 23.

2. Apple Launches AI-Enhanced iPhone 16

Apple shares experienced minimal changes in after-hours trading following the company’s announcement of new iPhone models on Monday. Analysts noted that the new AI-driven features did not present any major surprises.

Apple detailed a range of enhancements for the iPhone 16, including upgrades to the Siri voice assistant and various smart camera options tailored for professional video editing.

Analysts indicated that the new offerings were consistent with expectations following Apple’s earlier announcement regarding its AI initiatives. However, some suggested that the gradual rollout of these features might deter potential buyers given strong competition from brands like Samsung and Huawei.

Apple aims to boost its iPhone sales with the launch of the iPhone 16 on September 20, with pre-orders beginning this Friday.

3. Oracle Exceeds Quarterly Projections

Oracle shares surged in after-hours trading following the company’s better-than-expected fiscal first-quarter results, bolstered by strong demand in its cloud sector.

The Texas-based cloud services firm also announced a partnership with Amazon Web Services, allowing customers to utilize Oracle’s Autonomous Database and Exadata Database Service within AWS.

Oracle reported adjusted earnings per share of $1.39 on revenue of $13.3 billion for the three months ending August 31, surpassing analysts’ forecasts of $1.33 EPS on $13.23 billion in revenue.

The total remaining performance obligation—a key metric for future revenue—reached $99 billion, reflecting a 53% increase year-over-year.

For the second quarter, Oracle projected revenue growth of 8% to 10%, exceeding analysts’ midpoint estimates of 8.72%.

4. Chinese Exports Exceed Expectations in August

Chinese exports rose more than expected in August, indicating that companies are increasing their orders in anticipation of potential tariffs from several trading partners.

Outbound shipments grew 8.7% year-on-year, surpassing forecasts of 6.5% and rebounding from a 7% increase in July, marking the fastest growth since March 2023.

Conversely, imports rose by only 0.5%, falling short of the 2% estimate and slowing from 7.2% in July, suggesting sluggish domestic demand in the world’s second-largest economy.

Analysts believe businesses may be trying to secure early orders amid signs of rising foreign tariffs against Chinese goods, with predictions of continued strong exports in the coming months.

5. Oil Prices Decline

Oil prices experienced a slight dip in European trading on Tuesday as concerns about weak domestic demand in China overshadowed potential disruptions from Tropical Storm Francine affecting U.S. oil production.

Futures for Brent crude, expiring in November, fell by 0.4% to $71.53 a barrel, while West Texas Intermediate crude dipped by 0.4% to $67.61 per barrel. Both benchmarks had settled higher on Monday.

Several oil companies, including Exxon Mobil, Shell, and Chevron, are suspending production and refining operations in the Gulf of Mexico due to the approaching storm, which is predicted to strengthen in the upcoming days.

Market sentiment has been affected by recent weak economic indicators from China, raising concerns about sluggish growth in the largest oil-consuming nation.