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Futures up: Dow 0.61%, S&P 500 0.61%, Nasdaq 0.70%

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US consumer prices increase moderately in July

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Intel ( INTC ) climbs after CEO meets Trump

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HanesBrands ( HBI ) jumps after report of Gildan's acquisition bid

(Updates before markets open)

By Johann M Cherian and Sanchayaita Roy

Aug 12 (Reuters) -

Wall Street's main indexes were gearing up for a higher open

on Tuesday, after data showed inflation rose broadly in line

with expectations in July, putting the Federal Reserve on track

to lower interest rates in September.

A Labor Department report showed that the Consumer Price

Index (CPI) rose by an expected 0.2% on a monthly basis in July,

while on an annual basis it increased 2.7% - a touch lower than

the 2.8% economists were projecting.

However limiting the optimism, the report also suggested

that underlying inflation rose by a more-than-expected 3.1% in

the previous month as markets gauge the impact tariffs and trade

uncertainty have had on the economy.

Yields on shorter-dated Treasury bonds - a

reflection of interest rate expectations - moved lower after the

data and interest

rate futures

showed traders continue to expect the Fed could lower

interest rates by about 25 basis points in September with a

88.8% chance.

"The core message in core inflation is that any

tariff-induced inflation is likely to be a process, not an

event. Eventually, tariffs can show up in varying degrees in

consumer prices, but these one-off price increases don't happen

all at once," said Brian Jacobsen, chief economist at Annex

Wealth Management.

"As long as breakeven inflation rates and other market

based measures of inflation expectations stay contained, the Fed

should feel comfortable enough to recommence cutting in

September."

The data also comes at a time when there are growing

concerns over the quality of economic data, weeks after

President Donald Trump fired the head of the Bureau of Labor

Statistics following downward revisions to previous months'

nonfarm payrolls counts.

At 08:49 a.m. ET, Dow E-minis were up 268 points, or

0.61%, S&P 500 E-minis were up 39.25 points, or 0.61%

and Nasdaq 100 E-minis were up 165 points, or 0.70%.

Futures tracking the domestically exposed small cap

Russell 2000 index jumped 1.3%.

Further providing some relief for investors globally,

U.S. and China extended their tariff truce until November 10,

staving off triple-digit duties on each other's goods.

U.S. stocks that have touched record highs, boosted by

better-than-expected earnings from technology majors, a detente

between the U.S. and its top trade partners and on expectations

of rate cuts.

Markets are monitoring developments around Trump's nominee

E.J. Antoni to the Bureau of Labor Statistics commissioner post

and potential candidates for the Fed's top job.

Among single stocks, Intel ( INTC ) rose 3.5% in premarket

trading as Trump praised CEO Lip-Bu Tan following their meeting

on Monday, days after seeking Tan's resignation.

Palo Alto Networks ( PANW ) gained 1.8% after brokerage

Piper Sandler raised its rating on the cybersecurity stock to

"overweight" from "neutral".

Shares of Circle Internet ( CRCL ) rose 11.5% after the

stablecoin firm posted its second-quarter results, while Venture

Global gained 5.7% as the LNG producer reported

second-quarter revenue above estimates.

Hanesbrands ( HBI ) soared 37% after a report said

Canada's Gildan Activewear ( GIL ) is nearing a deal to acquire

the U.S. innerwear maker for about $5 billion, including debt.

U.S.-listed shares of On Holding climbed 15.9%

after the sportswear maker raised its annual sales forecast.