A return to 40k on the cards for the Dow Jones later? All down to US CPI

Yesterday the Dow Jones rebounded further and that rebound took it to a session high of 39,792. The index later closed 408 points higher, at 39,765. The Dow Jones futures have traded higher today and earlier were pricing the reopening at above 39,825. They are off that high now and of course the US CPI data will be released ahead of the opening this afternoon and that could have a major impact on the price action thereafter. So, what do the markets expect from that CPI today? Well, generally the consensus is for a further, modest cooling of core annualised US consumer prices in July. The core annual run rate in June stood at 3.3%. The markets anticipate that dropping back to 3.2% in July. However, given the greater than forecast fall in US PPI yesterday, some have erred on a deeper drop. It is worth noting, that often it takes a few months for PPI to filter into CPI and that might be the case later today- we shall see on that. So, can the Dow Jones make it back to 40k today? Well 200 points is spitting distance for this index and hence it is entirely possible, but naturally it might need that CPI data to help propel the move. Meantime, the Dow Jones futures are just now pricing the opening at around 39,785