Stocks headed for higher start amid slew of encouraging developments
S&P futures vs fair value: +51.70. Nasdaq futures vs fair value: +162.80. The stock market is headed for a sharply higher start amid positive earnings news, lower-than-expected weekly claims data, better-than-feared PPI data for September, and lower interest rates. The S&P 500 futures trade 52 points, or 1.2%, above fair value. UnitedHealth (UNH 414.00, +10.45, +2.6%), Bank of America (BAC 44.22, +1.08, +2.5%), Wells Fargo (WFC 46.37, +0.32, +0.7%), Morgan Stanley (MS 100.64, +2.07, +2.1%), Walgreens Boots Alliance (WBA 47.47, +0.21, +0.4%), and Taiwan Semi (TSM 114.10, +4.12, +3.8%) each beat top and bottom-line estimates. Separately, initial jobless claims fell to their lowest level since the start of the pandemic at 293,000 (Briefing.com consensus 332,000). Producer prices for final demand increased 0.5% m/m (Briefing.com consensus +0.6%) and the index for final demand, less foods and energy, increased just 0.2% (Briefing.com consensus +0.5%).The 10-yr yield is down two basis points to 1.53% amid a renewed sense of peak-inflation pressures.