Futures Pointing To Initial Strength On Wall Street

Futures Pointing To Initial Strength On Wall Street

The market started slightly lower Wednesday but turned higher within the first hour of trading and kept going.

The Dow Jones industrial average rose more than 300 points Thursday.

Cleveland Fed president Loretta Mester, a voting member in the central bank's rate-setting committee this year, said the recent stock market sell-off and jump in volatility will not damage the economy's overall strong prospects.

Other gainers in the technology industry included Cisco Systems, which rose $1.07, or 2.7 percent, to $40.60.

As the Fed lifts rates, companies and individuals also tend to borrow less, another potential damper on the economy.

In premarket trading, Dow component's Cisco climbed nearly 8 percent after the company posted upbeat results as well as a forecast.

The yield on the 10-year Treasury note rose to 2.91 percent. Nasdaq clung to a 1.1 percent gain after rising as much as 8.7 percent from its all-time peak on January 26. That helped banks, as the higher interest rates make lending more profitable. Silver rose 35 cents, or 2.1 percent, to $16.88 an ounce. The contract rose $1.41, or 2.4 percent, to settle at $60.60 a barrel on Wednesday. The Nasdaq climbed 53 points, or 0.7 per cent, to 7,196.

Stocks are slightly lower and bond yields are higher in early trading after the government reported the highest increase in consumer prices in a year.

At 8:30 a.m. ET, the dew data is awaited to display USA consumer prices have been increased solidly in the month of January.

More news: Flower prices up slightly this Valentine's Day, depending on suppliers

Rail freight operator Aurizon Holdings rallied 2 percent as it reported a 52 percent increase in half-year profits.

The Standard & Poor's 500 index fell 13 points, or 0.4 percent, to 2,651.

The Dow rose 208 points, or 0.8 per cent, to 25,098.

Speculators expected European stocks to open higher as they saw Britain's FTSE inching up 0.5 percent.

Data showed US producer prices rose 0.4 percent in January, but only matched economists' estimates and likely helped further ease fears of inflation uptick. The major index futures are now pointing to a higher open for the markets, with the Dow futures up by 206 points. The CBOE Volatility index, VIX, closed out Wednesday's session at 19 points and on Thursday declined even further to 18 points.

Before the release of the data, the Dow futures were showing a gain of about 170 points.

The Labour Department's core Consumer Price Index, which excludes the volatile food and energy components, increased 0.3 per cent in January, while economists polled by Reuters had forecast an increase of 0.2 per cent. In the past five sessions, the S&P 500 has gained 5.6 percent, and it remains down 4.9 percent from a Jan 26 record high. A report showed an unexpected fall in retails sales last month.

Investors were anxiously awaiting the data on consumer prices. The data rekindled fears that the Federal Reserve would feel compelled to act aggressively to tamp down rising prices by hiking rates at a rapid clip in 2018. Investors anxious that that means inflation is gaining steam, and that the Federal Reserve will start raising interest rates faster than previously anticipated to keep that inflation in check.

Related Articles