Dow futures rise nearly 300 points after upbeat earnings from big banks, economic data

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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.

What’s happening

  • 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.
  • Nasdaq-100 futures 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 advanced 0.7%.

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.

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

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

Which companies are in focus?

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