U.S. Stocks May See Initial Strength Following Slew Of Data

With traders initially reacting positively to a slew of U.S. economic data, stocks may move to the upside in early trading on Thursday. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.3 percent.

The futures held on to earlier gains even as the Labor Department released a report showing producer prices in the U.S. increased by more than expected in month of August.

The Labor Department said its producer price index for final demand advanced by 0.7 percent in August after climbing by an upwardly revised 0.4 percent in July.

Economists had expected producer prices to rise by 0.4 percent compared to the 0.3 percent increase originally reported for the previous month.

The report also said the annual rate of producer price growth accelerated to 1.6 percent in August from 0.8 percent in July. The annual rate of growth was expected to accelerate to 1.2 percent.

Positive sentiment may have been generated in reaction to a Commerce Department report showing U.S. retail sales increased by much more than expected in the month of August.

The report said retail sales climbed by 0.6 percent in August after rising by a downwardly revised 0.5 percent in July.

Economists had expected retail sales to inch up by 0.2 percent compared to the 0.7 percent increase originally reported for the previous month.

Excluding sales by motor vehicles and parts dealers, retail sales still rose by 0.6 percent in August following a 0.7 percent advance in July. Ex-auto sales were expected to rise by 0.4 percent.

A separate report released by the Labor Department showed first-time claims for U.S. unemployment benefits edged up by less than expected in the week ended September 9th.

The report said initial jobless claims crept up to 220,000, an increase of 3,000 from the previous week’s revised level of 217,000. Economists had expected jobless claims to rise to 225,000 from the 216,000 originally reported for the previous week.

Stocks showed a lack of direction over the course of the trading session on Wednesday, with the major averages bouncing back and forth across the unchanged line as traders digested a highly anticipated report on consumer price inflation.

The major averages eventually ended the session mixed. While the Dow dipped 70.46 points or 0.2 percent to 34,575.53, the S&P 500 inched up 5.54 points or 0.1 percent to 4,467.44 and the Nasdaq rose 39.97 points or 0.3 percent to 13,813.59.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Thursday. Japan’s Nikkei 225 Index surged by 1.4 percent, while China’s Shanghai Composite Index crept up by 0.1 percent.

The major European markets have also moved to the upside following a widely anticipated interest rate hike by the ECB. While the U.K.’s FTSE 100 Index has jumped by 1.0 percent, the French CAC 40 Index is up by 0.4 percent and the German DAX Index is up by 0.2 percent.

In commodities trading, crude oil futures are surging $1.51 to $90.03 a barrel after falling $0.32 to $88.52 a barrel on Wednesday. Meanwhile, after edging down $2.60 to $1,932.50 an ounce in the previous session, gold futures are sliding $8.50 to $1,924 an ounce.

On the currency front, the U.S. dollar is trading at 147.47 yen versus the 147.46 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.0674 compared to yesterday’s $1.0730.

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