*

CPI data shows inflation eased in June

*

PepsiCo ( PEP ) dips on quarterly revenue miss

*

Pfizer ( PFE ) moves ahead with once-daily weight-loss pill,

shares up

*

Futures up: Dow 0.17%, S&P 500 0.22%, Nasdaq 0.28%

(Updated at 8:42 a.m. ET/1242 GMT)

By Lisa Pauline Mattackal and Ankika Biswas

July 11 (Reuters) -

Wall Street futures turned positive on Thursday after data

showed inflation eased in June, boosting expectations of a

central bank rate cut in September, although a slump in shares

of Delta Air Lines ( DAL ) dragged on other airline stocks as well.

A Labor Department report showed the

Consumer Price Index

fell 0.1% on a monthly basis in June, versus the 0.1%

increase forecast by economists polled by Reuters. Annually, it

increased 3%, lower than the expected 3.1% rise. Core inflation

measures were also below forecasts.

Traders

increased bets

on a September rate cut, with interest-rate futures prices

showing an about 85% chance of that occurring, versus around a

70% chance before the data.

"The numbers came in much better than expected, which

speaks directly to the possibility of a September rate cut. I

think it also brings into question the possibility of a July

rate cut, although those chances are quite slim," said Robert

Pavlik, senior portfolio manager at Dakota Wealth.

"The market is really going to be banking on a September

rate cut."

Among headlining stocks, Delta Air Lines ( DAL ) slumped

8.8% in premarket trading after forecasting lower-than-expected

profits in the current quarter, with the carrier citing

discounting pressure on the lower end of the market.

United Airlines Holdings ( UAL ), American Airlines

Group ( AAL ), Spirit Airlines ( SAVE ), Alaska Air Group ( ALK )

and JetBlue Airways ( JBLU ) fell between 0.7% and 4.8%.

Meanwhile, AI-chip favorite Nvidia ( NVDA ) jumped 1.5%

after closing at a three-week high on Wednesday. Other megacap

stocks also rose after the inflation reading.

Futures tracking the economically sensitive small-cap

Russell 2000 jumped nearly 2%.

The S&P 500 notched its sixth consecutive record close

and the Nasdaq its seventh on Wednesday, bolstered by megacap

and semiconductor stocks after Federal Reserve

Chair Jerome Powell raised expectations of policy easing in

September, but reiterated that such a decision would depend on

data.

Hopes for interest rates to be lowered, continued economic

resilience and exuberance around artificial intelligence-linked

stocks have kept Wall Street's main indexes at or near record

highs this year.

Investors will also eye Friday's Producer Price Index

reading for insight into the inflation trajectory.

Another key test for the rally is the second-quarter

corporate earnings season, with all eyes on big banks, which are

scheduled to report on Friday.

At 8:42 a.m. ET, Dow e-minis were up 69 points, or

0.17%, S&P 500 e-minis were up 12.25 points, or 0.22%,

and Nasdaq 100 e-minis were up 58.75 points, or 0.28%.

Other single movers included PepsiCo ( PEP ), which shed

2.4% after the soda and snacks maker missed expectations for

second-quarter revenue.

Pfizer ( PFE ) rose 2.9% following the drugmaker's plans

to conduct studies in the second half of 2024 on a reworked,

once-a-day version of its experimental obesity pill,

danuglipron.

Alcoa ( AA ) rose 4.3% after the aluminum producer's

preliminary second-quarter results beat estimates.