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Market Snapshot: Dow futures rise over 200 points as bond yields recede following inflation data

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U.S. stock index futures pointed to an extension of gains Thursday as bond yields slipped further despite Wednesday’s September inflation data and sifted through earnings reports from major banks and other corporate heavyweights.

What’s happening
  • Futures on the Dow Jones Industrial Average
    YM00,
    +0.86%

    rose 237 points, or 0.7%, to 34,494.
  • S&P 500 futures
    ES00,
    +0.98%

    were up 33 points, or 0.8%, at 4,388.25.
  • Nasdaq-100 futures
    NQ00,
    +1.16%

    gained 125.75 points, or 0.9%, to trade at 14,890.

On Wednesday, the Dow Jones Industrial Average
DJIA,
-0.00%

fell less than a point to extend a losing streak to four sessions, while the S&P 500
SPX,
+0.30%

rose 0.3% and the Nasdaq Composite
COMP,
+0.73%

advanced 0.7%.

What’s driving markets

Investors 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
TMUBMUSD10Y,
1.537%

continued to descend from last week’s highs,” said Emily Nicol, economist at Daiwa Capital Markets Europe.

Read: Stronger-than-expected U.S. inflation data has bond traders weighing the risk of a Fed policy error

More inflation data is due for release Thursday with the producer price report, which in combination with the CPI data could show how much companies have had to absorb price rises instead of pass them along to their customers.

In China, producer prices surged 11% year-over-year in September, the fastest rise in more than two decades.

Which companies are in focus?

: More electric pickup trucks are coming to market. The question now is who will buy them?

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