Stocks are likely to move to the upside in early trading on Thursday, adding to the gains posted in recent sessions. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 224 points.
The upward momentum on Wall Street comes as traders digest a slew of U.S. economic data, including a Labor Department report showing producer prices rose in line with economist estimates in January.
The Labor Department said its producer price index for final demand climbed by 0.4 percent in January after coming in unchanged in December.
Excluding food and energy prices, core producer prices also increased by 0.4 percent in January. Core prices had been expected to edge up by 0.2 percent.
A separate report from the Labor Department showed initial jobless claims increased in line with expectations in the week ended February 10th.
The report said initial jobless claims climbed to 230,000, an increase of 7,000 from the previous week's revised level of 223,000.
The Philadelphia Federal Reserve also released a report unexpectedly showing a faster rate of growth in regional manufacturing activity in the month of February.
The Philly Fed said its index for current manufacturing activity climbed to 25.8 in February from 22.2 in January, with a positive reading indicating growth. Economists had expected the index to drop to 21.1.
Meanwhile, the New York Fed released a report showing regional manufacturing activity grew at a somewhat slower rate in February.
The New York Fed said its general business conditions index fell to 13.1 in February from 17.7 in January. Economists had expected the index to edge down to 17.5.
Just before the start of trading, the Federal Reserve is scheduled to release its report on industrial production in the month of January. Production is expected to rise by 0.2 percent.
The National Association of Home Builders is also due to release its report on homebuilder confidence in the month of February shortly after the start of trading. The housing market index is expected to hold at 72.
After initially moving to the downside, stocks moved sharply higher over the course of the trading session on Wednesday. With the strong upward move on the day, the major averages added to the gains posted in the three previous sessions.
The major averages ended the session near their best levels of the day. The Dow jumped 253.04 points or 1 percent at 24,893.49, the Nasdaq soared 130.10 points or 1.9 percent to 7,143.62 and the S&P 500 surged up 35.69 points or 1.3 percent to 2,698.63.
In overseas trading, stock markets across the Asia-Pacific region moved significantly higher during trading on Thursday. Japan's Nikkei 225 Index shot up by 1.5 percent, while Hong Kong's Hang Seng Index spiked by 2 percent. Several markets were closed for public holidays.
The major European markets have also moved to the upside on the day. While the French CAC 40 Index has jumped by 1.4 percent, the German DAX Index is up by 0.6 percent and the U.K.'s FTSE 100 Index is up by 0.4 percent.
In commodities trading, crude oil futures are slipping $0.18 to $60.42 a barrel after jumping $1.41 to $60.60 a barrel on Wednesday. An ounce of gold is trading at $1,355.20, down $2.80 compared to the previous session's close of $1,358. On Wednesday, gold soared $27.60.
On the currency front, the U.S. dollar is trading at 106.53 yen compared to the 107.01 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.2475 compared to yesterday's $1.2451.
by RTT Staff Writer
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