Thursday May 10th

10-05-2018

US stocks set for a higher open after tame inflation data

U.S. stock index futures were higher ahead of Thursday's open, as markets awaited a fresh batch of corporate earnings, while digesting the latest inflation data. Around 8:30 a.m. ET, Dow Jones industrial average futures rose 35 points, indicating a rise of 42.46 points. Nasdaq 100 and S&P 500 futures also indicated a higher start to the session for their respective markets. The consumer price index rose 0.2 percent in April, just below an expected gain of 0.3 percent. Weekly jobless claims also remained unchanged at 211,000. The moves in premarket trade came after U.S. stocks finished the previous session in the black. Stocks had been on the rise following a strong uptick in crude futures. Oil prices have been on the rise since Tuesday, when the U.S. announced that it would be withdrawing from the Iran nuclear accord set in place in 2015. Prices have extended gains Thursday, with Brent hovering around $77.60 per barrel and U.S. crude around $71.60 during morning trade. U.S. allies in Europe have been trying to salvage the Iran deal, and preserve their trade relations with Tehran. On the corporate front, Worldpay, AMC Networks, Nvidia, Dropbox, News Corp., Symantec, TiVo and Yelp are all scheduled to publish their latest earnings. In politics, President Donald Trump and First Lady Melania welcomed a plane carrying three Americans, who were recently released by North Korea. The news is seen as an encouraging sign of better relations in the future between the U.S. and North Korea. In markets overseas, markets in Asia closed higher on the back of higher oil prices, while stocks in Europe fluctuated around the flatline, as investors awaited a monetary policy decision by the Bank of England. The Nikkei 225 edged higher by 0.39 percent, or 88.30 points, to close at 22,497.18. The Topix was up 0.27 percent by the end of the day, with gains led by its mining and oil subindexes, up 2.93 percent and 1.97 percent, respectively. Moderate gains were similarly seen in South Korea as the benchmark Kospi rose 0.83 percent to 2,464.16. Greater China markets were in positive territory, with Hong Kong's Hang Seng Index advancing 0.8 percent by 3:13 p.m. On the mainland, the Shanghai composite edged up by 0.51 percent to end at 3,175.17 and the smaller Shenzhen composite advanced 0.52 percent to 1,844.04. Gold prices steadied on Thursday as the dollar held firm near its 2018 peak on strong U.S. bond yields, with investors also keeping an eye out for any further impact from U.S. President Donald Trump's decision to pull out of a nuclear deal with Iran. Spot gold was up 0.1 percent at $1,313.94 per ounce by 0359 GMT. U.S. gold futures for June delivery were 0.1 percent higher at $1,314.10 per ounce.