Stock Futures Jump as U.S. Producer Prices Rise, BOE Holds Steady

Stock futures are on track to open at record highs on Thursday after the latest data shows producer prices climb in June.
By Keris Alison Lahiff ,

Stock futures were on track to open at record highs on Thursday after the latest data showed producer prices climbed in June.  

S&P 500 futures were up 0.73%, Dow Jones Industrial Average futures climbed 0.8%, and Nasdaq futures added 0.65%.

Prices of produced goods in the U.S. rose 0.5% in June, according to the Bureau of Labor Statistics. Economists had expected a 0.3% increase. Excluding food and energy, core prices rose 0.3%. 

The number of new claims for unemployment benefits remained unchanged at 254,000 in the past week, another sign of a strong labor market. The less-volatile, four-week average fell 5,750 to 259,000. 

The S&P 500 and Dow had clinched new record closes on Wednesday, though just barely, after a day of wavering between gains and losses. New records were also made on Monday and Tuesday after a better-than-expected U.S. jobs report brought relief over the state of the U.S. economy. 

The Bank of England opted to leave its key interest rate at 0.5% in the first monetary decision since the United Kingdom voted to exit the European Union. The central bank also held steady on its 375-billion-pound asset purchase program. Global traders had expected members to decide upon a rate cut for the first time since 2009. 

"In the absence of a further worsening in the trade-off between supporting growth and returning inflation to target on a sustainable basis, most members of the Committee expect monetary policy to be loosened in August," the central bank said in a statement. 

Markets are pricing in one interest rate hike in the U.S. at the most in 2016, but Philadelphia Federal Reserve President Patrick Harker said the central bank could raise two times before the end of the year. In May, Harker predicted two to three increases this year. Harker said the U.S. economy is on "fairly firm footing" during an event in Philadelphia Wednesday evening. 

JPMorganChase (JPM) - Get Reportclimbed in premarket trading after beating profit estimates for its second quarter. The bank earned $1.55 a share over the quarter, 12 cents above forecasts. Revenue rose to $25.21 billion, higher than an expected $24.16 billion.

Railroad operator CSX (CSX) - Get Report also topped reduced earnings estimates, even as profit slumped in the double digits. The company earned an adjusted 47 cents a share, 3 cents higher than consensus. Profit slumped 20% as freight volume declined 9%. Lower commodity prices have hit volume transported in recent quarters. 

Delta Air Lines (DAL) - Get Reportreported a mixed quarter with profit exceeding estimates and sales falling short. The airline earned an adjusted $1.47 a share, a nickel above consensus. Revenue fell 2% to $10.45 billion, below an expected $10.48 billion. 

BlackRock (BLK) - Get Reportwas slightly lower in premarket trading as quarterly profit took a tumble. The money manager said recent political and economic uncertainty had led clients to take a pause. BlackRock earned an adjusted $4.78 a share, a penny above forecast but below $4.96 a year earlier. 

Yum! Brands (YUM) - Get Report  upped its profit forecast for the full year thanks to a rebound in China. The owner of KFC reported a 3% increase in system sales in China, a region that accounts for around half of total revenue. The company hiked its full-year operating profit growth forecast to 14% from 12%, pointing to improved trends in China. The Kentucky-based company expects to complete a spinoff of its China business by the end of October.  

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