CPI, Housing, & Consumer Spending

Good morning. Premarket futures are slightly in positive territory following a better than expected CPI. While overseas markets were lower and we have more disappointing retail news from Home Depot (HD) and Wal-Mart (WMT), the CPI will convince investors that at worst the Fed will remain on hold for the rest of the year, if not lower rates if weakness in consumer spending and the housing market continues to negatively impact the economy.

From my premarket scans, notable upside movers this morning include: ATEA, SIGA, WINN, HYTM, ICFI, RTRSY, ICAD, BRCD, ACGY, CRTX, BWLD, DNDN, IBKR, MICC, SOFO, JSDA, CNTY, and TASR. Notable decliners are KRSL, STEC, CNTF, JASO, IGLD, AMGN, BSTE, NTAP, BEAS, MPEL, TIBX, ASYS, SINDA, and NDAQ.

We have two pieces of data on the housing market coming up. At 1PM we have the housing market index and tomorrow morning a report on housing starts. Oil prices will also be closely monitored as we get closer to Memorial holiday and the summer driving season. A lot of traders seem to be placing an emphasis on the 1500 level in the S&P which we've stayed above for 7 of the last 8 trading days. The idea is that if the market holds above that level, the bullish trends remain fully in place while a close under that would signal the potential for a longer period of consolidation. Have a terrific Tuesday!