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U.S. weekly jobless claims increase
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March PPI up 2.7% y-o-y vs est of 3.0% rise
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Delta Air gains on upbeat Q2 profit forecast
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Harley-Davidson slips after CFO steps down
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Futures up: Dow 0.18%, S&P 0.30%, Nasdaq 0.47%
(Updates prices)
By Sruthi Shankar and Ankika Biswas
April 13 (Reuters) - U.S. stock indexes were set for a
higher open on Thursday as moderating producer prices and a jump
in weekly jobless claims brought relief to investors worried
about how far the Federal Reserve will hike interest rates to
tame inflation.
Following a selloff in March due to the banking crisis, the
benchmark S&P 500 has traded in a tight range this month
as investors assessed the path for U.S. interest rates following
strong jobs data and signs of cooling inflation.
A Labor Department report showed producer prices rose 2.7%
in March, on a year-over-year basis, below economists' estimates
of a 3% rise.
Data also showed that the number of Americans filing new
claims for unemployment benefits increased more than expected
last week, a further sign that labor market conditions were
loosening up.
"This is a good indication that inflation is easing and
dropping rather sharply. Jobless claims were also favorable news
for the Fed," said Peter Cardillo, chief market economist at
Spartan Capital Securities in New York.
"Inflation both at the consumer and producer levels are
going south, in the right direction ... even though elevated,
it's still good news and this is one big consideration in terms
of the Fed ending its tightening cycle."
Wall Street closed lower on Wednesday after data showed
consumer prices rose at a slower-than-expected pace in March,
however, core prices remained sticky and supported the case for
another 25-basis point rate hike by the Fed in May.
The dollar and Treasury yields slid as investors mostly
stuck to expectations of the 25-bps hike after Thursday's data.
Minutes from the Fed's latest policy meeting indicated
concerns of a recession following the banking sector stress and
that several policymakers considered pausing rate hikes last
month.
Big U.S. banks JPMorgan Chase & Co , Citigroup Inc and Wells Fargo & Co are scheduled to report
quarterly results on Friday, and investors will watch them
closely for details about the sector's overall health.
Most Wall Street banks are likely to report lower quarterly
earnings and give a dour outlook, with the regional banking
crisis and a slowing economy expected to weigh on profitability.
Analysts expect S&P 500 companies to record a profit decline
of 5.2% in the first quarter, as per Refinitiv IBES data, in
what could be their worst showing since the third quarter of
2020.
Financial companies that are part of the S&P 500 are
expected to report a profit growth of 4.3% in the first quarter.
At 8:53 a.m. ET, Dow e-minis were up 62 points, or
0.18%, S&P 500 e-minis were up 12.5 points, or 0.30%,
and Nasdaq 100 e-minis were up 60.75 points, or 0.47%.
Delta Air Lines Inc's shares gained 2.6% in
premarket trading following a higher-than-expected
second-quarter profit forecast.
Harley-Davidson Inc dropped 3.6% after the
motorcycle maker said Chief Financial Officer Gina Goetter was
leaving the company at the end of April.
(Reporting by Sruthi Shankar and Ankika Biswas in Bengaluru;
Editing by Sriraj Kalluvila and Shounak Dasgupta)
