Futures rise with lower interest rates and positive earnings news
S&P futures vs fair value: +43.20. Nasdaq futures vs fair value: +127.00. The S&P 500 futures trade 43 points, or 1.0%, above fair value as the market keys off positive-sounding earnings news and lower interest rates. Namely, UnitedHealth (UNH 414.89, +11.34, +2.8%), Bank of America (BAC 44.30, +1.16, +2.7%), Wells Fargo (WFC 46.69, +0.64, +1.4%), Morgan Stanley (MS 100.25, +1.68, +1.7%), and Walgreens Boots Alliance (WBA 48.39, +1.13, +2.4%) are seeing healthy reactions to their better-than-expected earnings reports. In addition, Taiwan Semi (TSM 114.06, +4.08, +3.7%), the world's largest semiconductor foundry, beat EPS estimates and guided Q4 revenue above expectations. The iShares Semiconductor ETF (SOXX 444.33, +6.73, +1.5%) is currently up 1.5% in pre-market action. In the Treasury market, the 10-yr yield has slipped three basis points to 1.52%, which has alleviated concerns about rising rates despite persistent inflation pressures. The 2-yr yield is down one basis point to 0.35%. The U.S. Dollar Index is down 0.3% to 93.80.On the data front, investors will receive the Producer Price Index for September (Briefing.com consensus 0.6%) and the weekly Initial Claims (Briefing.com consensus 332,000) and Continuing Claims report at 8:30 a.m. ET. WTI crude futures are up 1.1%, or $0.86, to $81.29/bbl ahead of the delayed weekly inventory report from the EIA at 11:00 a.m. ET. According to a report published in The Wall Street Journal, oil demand has been fueled by power plants switching to oil because of increasing coal and natural gas prices. In U.S. Corporate news:UnitedHealth (UNH 414.89, +11.34): +2.8% after beating top and bottom-line estimates and raising its FY21 EPS guidance to in-line with expectations. Walgreens Boots Alliance (WBA 48.39, +1.13): +2.4% after beating top and bottom-line estimates. Bank of America (BAC 44.30, +1.16): +2.7% after beating top and bottom-line estimates. Wells Fargo (WFC 46.69, +0.64): +1.4% after beating top and bottom-line estimates. Morgan Stanley (MS 100.25, +1.68): +1.7% after beating top and bottom-line estimates. Taiwan Semi (TSM 114.06, +4.08): +3.7% after beating EPS estimates and guiding Q4 revenue above estimates. While not a U.S. company, Taiwan Semi is the world's largest semiconductor foundry and has an influence on the U.S. semiconductor sector. Reviewing overnight developments:Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note while Hong Kong's Hang Seng was closed for a holiday. Japan's Nikkei: +1.5% Hong Kong's Hang Seng: CLOSED China's Shanghai Composite: -0.1% India's Sensex: +0.9% South Korea's Kospi: +1.5% Australia's ASX All Ordinaries: +0.6%.In economic data:China's September CPI 0.0% m/m (expected 0.3%; last 0.1%); 0.7% yr/yr (expected 0.9%; last 0.8%). September PPI 10.7% yr/yr (expected 10.5%; last 9.5%). September PPI 10.7% yr/yr (expected 10.5%; last 9.5%)Japan's August Industrial Production -3.6% m/m (last -3.2%) and Capacity Utilization -3.9% m/m (last -3.4%)South Korea's September Import Price Index 26.8% yr/yr (last 22.4%) and Export Price Index 20.2% yr/yr (last 18.9%)Singapore's Q3 GDP 0.8% qtr/qtr (last -1.4%); 6.5% yr/yr (expected 6.6%; last 15.2%)India's September WPI Inflation 10.66% yr/yr (expected 11.10%; last 11.39%)Australia's September Employment Change -138,000 (expected -137,500; last -146,300) and Full Employment Change 26,700 (last -68,000). September Unemployment Rate 4.6% (expected 4.8%; last 4.5%) and September Participation Rate 64.5% (expected 64.7%; last 65.2%)In news:In Japan, LDP member Yamamoto called for fiscal spending of at least JPY33 trln with the Bank of Japan aggressively purchasing JGBs to fund the spending. China's PPI increased 10.7% in September, rising at its fastest pace since 1995. Chinese tiremakers are reportedly increasing their prices due to higher costs and intermittent power cuts. Coal India has reportedly put a temporary halt on deliveries to customers other than power plants.Major European indices trade in the green. STOXX Europe 600: +0.9% Germany's DAX: +0.9% U.K.'s FTSE 100: +0.7% France's CAC 40: +0.9% Italy's FTSE MIB: +1.0% Spain's IBEX 35: +1.0%.In economic data:Spain's September CPI 0.8% m/m, as expected (last 0.5%); 4.0% yr/yr, as expected (last 3.3%)Swiss September PPI 0.2% m/m (last 0.7%); 4.5% yr/yr (last 4.4%)In news:The European Commission offered to reduce customs checks and red tape at the Northern Ireland border but refused to budge on EU court oversight as negotiations with the U.K. continue. Russia's Deputy Prime Minister Novak said that his country has not received any requests to increase the supply of gas.