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U.S. stock futures are higher again this morning, indicating Wall Street is not done with its rally and may be poised to continue it after yesterday's surprise 50 basis points rate cut by the Federal Reserve. Today investors will get another look at inflation number as CPI is released before the bell. Morgan Stanley is also due to report this morning.

Yesterday, following the Fed move, U.S. stocks rallied across the board with the Dow Jones Industrial Average posting its best percentage gain since 2003, rising 2.5% or 335 points. The Nasdaq Composite rose 70 points, or 2.7% and the S&P 500 added 43 points, or 2.9%. Other indices weren't far behind and the Russell 2000 had its biggest single-day point gain ever.

Despite the euphoric sentiment the surprise half a point rate cut yesterday cause, many believe the sentiment would be short-lived as fundamentals haven't changed and while the rate cut gave the needed psychological boost to Wall Street, it will take time to ripple through the economy. Yet, bank have already cut prime rates and mortgage owners with adjustable rates may find it easier. These are small steps, but they are the first and important steps for the rate to affect -- as Cramer calls it -- Main Street.

In about an hour, consumer price index for August will be released. According to Briefing,com, economists expect prices to have remained unchanged in August after a 0.1% increase in July. Core CPI, which excludes food and energy prices, is expected to have risen 0.2% in August, same as in July. It wouldn't surprise me if the numbers will be better-than-expected since the Fed has taken them into account when making the rate cut decision.
At 8:30 a.m., August housing starts and building permits will also be reported. If other recently released reports are any indication, these will show continued softness and decline further.
At 10:30 a.m., crude inventories are due. Oil has already reached new highs yesterday following the rate cut and the ensuing softness in the dollar, as well as expectations of accelerated economic growth. Today oil prices rose further as traders expect increased demand for already tight crude and gasoline supplies.

Overseas, European and Asian markets rallied, following US stocks. Two central banks, however, held key rates, the Bank of England and the Bank of Japan.

Morgan Stanley (NYSE: MS) has recently reported lower-than-expected earnings, posting Q3 EPS of $1.44 and Q3 revenue $7.96 billion vs $7.06 billion. Expectation was $1.54 EPS. Stock is down in premarket action.

Countrywide Financial (NYSE: CFC) shares are up 2.7% in premarket trading after CEO said yesterday he was bullish.

General Motors Corp. (NYSE: GM) and the United Auto Workers are entering their fifth day of bargaining, but if Ford and Chrysler hoped issues would be resolved with GM, they may have to think again as there are unique issues to each.

More corporate news: Before the bell: AAPL, GIS, DRI, SIRI, LEND ...

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