MW: U.S. stocks poised for firm gains ahead of trio of Fed speakers
U.S. stock-index futures trimmed gains Thursday after economic data and earnings, but Wall Street remained on track for a rebound as investors took cues from advances in Asia and Europe.
Futures for the Dow Jones Industrial Average YMZ5, +0.38% were up 68 points, or 0.4%, at 16,890. Dow futures had been up triple digits but pulled back after a negative U.S. consumer price inflation reading and as Goldman Sachs Group Inc. shares GS, -0.27% slipped in premarket action on the back of weaker-than-expected earnings.
Futures for the S&P 500 index ESZ5, +0.58% gained 11.5 points, or 0.6%, to $1,995.50, while those for the Nasdaq 100 index NQZ5, +0.98% rose 28.5 points, or 0.7%, to 4,354.75.
Stocks saw a downbeat day on Wednesday, when the Dow industrials DJIA, +0.33% slid 1% to below the psychologically key 17,000 level as a dour forecast from Wal-Mart Stores Inc. WMT, -0.67% and the Fed’s Beige Book survey amplified concerns about the economic recovery.
Angus Nicholson, market analyst at IG, said Thursday’s futures gains were a combination of a bad-news-is-good-news rally and inspiration from Asia’s solid stock-market performance earlier in the day.
“Health care was the best performing sector in [Japan’s] Nikkei NIK, +1.15% and energy and materials performed particularly strongly in [Australia’s] ASX XJO, +0.63% If those strong sectoral performances were re-enacted in the U.S. markets, it should see a decent performance,” he said in emailed comments.
Data: The number of people who applied for first-time jobless benefits fell by 7,000 to 255,000 in the week ended Oct. 10, matching the lowest level since 1973 and coming in below expectations for claims of 270,000.
The consumer-price index fell by a seasonally adjusted 0.2% in September, matching forecasts.
The New York Federal Reserve Bank on Thursday said its Empire State manufacturing index for October inched up to negative 11.4 from negative 14.7 in September.
At 10 a.m. Eastern, the Philadelphia Fed manufacturing index for October is due, projected to climb to negative 1 from negative 6 in September.
Fed speakers: St. Louis Fed President James Bullard gives the opening remarks at a conference in St. Louis. Bullard is not a voting member of the central bank’s policy setting committee this year.
New York Fed President William Dudley, who is a voting member, will give a speech in Washington at 10:30 a.m. Eastern.
Cleveland Fed President Loretta Mester gives a speech in New York City at 4:30 p.m. Eastern. Mester is not a voting member of the FOMC this yearInvestors are closely watching comments from Fed members in trying to gauge when the central bank will raise interest rates for the first time in almost 10 years. Markets are increasingly pushing out their rate-hike expectations to 2016 after a recent string of disappointing data have offered a muted picture of growth in the U.S.
Earnings: First up ahead of the bell, UnitedHealth Group Inc. UNH, -3.62% reported third-quarter earnings of $1.65 a share, up from $1.63 a year ago and better than the $1.64 forecast by analysts polled by FactSet. Shares were 0.3% higher in thin premarket trade.
Philip Morris International Inc. PM, +1.09% advanced ahead of the bell after reporting earnings ahead of forecasts.
Goldman Sachs Group Inc. GS, -0.40% lost 1.2% after the investment bank’s third-quarter profit tumbled as trading volumes dipped.
Citigroup Inc. C, +2.11% rose in premarket trade after it said its third-quarter profit rose.
After the closing bell, Barbie maker Mattel Inc. MAT, -1.24% and oil-field services company Schlumberger Ltd. SLB, -0.56% are slated to report.
Movers & shakers: Shares of Netflix Inc. NFLX, -8.98% shaved off more than 5% in premarket action after the online-streaming company late Wednesday reported disappointing subscriber growth in the U.S.
Wal-Mart Stores Inc. WMT, -0.65% slipped ahead of the bell, set to build on a 10% slide from Wednesday, when the retailer unveiled spending plans for the next several years.
Garmin Ltd. GRMN, -11.38% slumped 11% before the open after the satellite-navigation company estimated that currency moves will shave off $52 million in third-quarter revenue.
Other markets: European stock markets moved firmly higher after three sessions of declines.
Oil prices CLX5, -1.50% fell as investors continued to worry about U.S. stockpiles.
Read: Oil prices will rebound much faster than market is predicting, Barclays says
Metals rose across the board, while the dollar traded mixed other major currencies.
