Futures edge higher on inflation cheer, Disney slides
(Reuters) – U.S. stock index futures edged higher in the early hours of Thursday on lingering optimism over upbeat inflation data, while Disney took a hit as it lost subscribers in the prior quarter.
The Nasdaq index ended Wednesday at its highest level in more than eight months, boosted by large-cap technology stocks as Treasury yields fell after data showed April consumer prices slowed slightly from a year ago, raising hopes that the Federal Reserve’s interest rate-hiking cycle is close to an end.
At 4:46 a.m. ET, Dow e-minis were up 39 points, or 0.12%, S&P 500 e-minis were up 11.5 points, or 0.28%, and Nasdaq 100 e-minis were up 35 points, or 0.26%.
On tap for the day, the Labor Department’s Producer Price Index (PPI) for final demand is likely to show a 0.3% increase in April, after falling 0.5% in the previous month. Initial claims for state unemployment benefits, also due at 0830 ET (1230 GMT), likely rose to 245,000 in the week ended May 6, from 242,000 in the previous week.
Any updates on raising the United States’ $31.4 trillion debt ceiling were also being watched by investors, as the country races to avert an unprecedented default.
U.S. Treasury Secretary Janet Yellen urged Congress to raise the federal debt limit and warned that default could have severe repercussions on the global economy and risked undermining U.S. global economic leadership.
Among stocks, Walt Disney (NYSE:DIS) Co shares slid 5% premarket after the company shed subscribers in the first quarter, overshadowing quarterly earnings that came in line with expectations.
Alphabet (NASDAQ:GOOGL) Inc shares extended gains to rise 1.0% after Google rolled out more artificial intelligence products on Wednesday to take on competition from Microsoft Corp (NASDAQ:MSFT).