U.S. stock-index futures pointed to an extension of gains Thursday, rising as a parade of big banks released upbeat earnings and data showed a drop in first-time jobless claims to the lowest since the pandemic began and a smaller-than-expected rise in producer prices.
A continued fall in Treasury yields, meanwhile, offered support for interest rate sensitive technology stocks.
Futures on the Dow Jones Industrial Average
rose 287 points, or 0.8%, to 34,544.
S&P 500 futures
were up 40 points, or 0.9%, at 4,395.
gained 154.50 points, or 1%, to trade at 14,918.25.
On Wednesday, the Dow Jones Industrial Average
fell less than a point to extend a losing streak to four sessions, while the S&P 500
rose 0.3% and the Nasdaq Composite
What’s driving markets
Corporate earnings reporting season is picking up steam, with results from a handful of major banks topping expectations. Investors also cheered economic data, including a drop in first-time claims for unemployment benefits last week to 293,000 — the first sub-300,000 reading since before the pandemic took hold in early 2020.
In other U.S. data, producer prices rose 0.5% in September compared to 0.7% in August but were up 8.6% for the September year compared to 8.3% for the year to August.
Investors have also focused on the more benign elements of Wednesday’s consumer-price index report, which showed the core measure that excludes food and energy prices rising 0.2% in September, keeping the year-over-year growth rate at 4%.
Prices of airfares, hotels and used cars were among the costs that declined. “While that result owed to some weakness in prices sensitive to the virus — such as airfares, hotel charges, car rental fees and apparel — the yield on the 10-year U.S. Treasury
continued to descend from last week’s highs,” said Emily Nicol, economist at Daiwa Capital Markets Europe.
In China, producer prices surged 11% year-over-year in September, the fastest rise in more than two decades.
Which companies are in focus?
Bank of America Corp.
reported profit and revenues that topped expectations as it released $1.1 billion in reserves to its bottom line, driven primarily by asset quality improvements. Shares rose 2.8% in premarket trade.
Shares of Wells Fargo & Co.
rose 1.1% after the bank beat Wall Street estimates, while releasing $1.7 billion from loan-loss reserves.
- Morgan Stanley MS shares were also higher after the bank reported results that beat expectations, helped by a 68% rise in investment-banking revenue to $2.85 billion from $1.7 billion.
Shares of Citigroup Inc.
rose 1% after the bank said earnings rose 48%, beating estimates.
UnitedHealth Group Inc.
shares rose after the healthcare company raised its guidance for full-year earnings, and said that its previous expectations for how Covid-19 will affect results this year remained steady.
Shares of Walgreens Boots Alliance
rose after the pharmacy retailer reported fiscal fourth-quarter earnings and sales that beat expectations.
More than 10,000 Deere & Co.
workers went on strike Thursday, after rejecting a contract offer. Shares were down 2%.
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