Stock futures stepped up to moderate gains Wednesday after data showed U.S. inflation remained mild in September.
Dow futures jumped 20.2 points above fair market value. Nasdaq 100 futures doubled their early gains and were up 10 points. S&P 500 futures were ahead 2.9 points.
The stock market today opens with a little more optimism under its belt, after buyers sent the Nasdaq and S&P 500 to healthy gap-up gains Tuesday .
The moves put the indexes decisively above their 200-day moving averages. The gains also left both indexes within shooting distance of their next hurdle: the 50-day moving average. Both indexes failed in their most recent effort to retake that line, on Oct. 6.
The day’s top economic news item was inflation data from the Labor Department showing consumer prices rose a tame 0.1% in September. The number was up from a 0.2% slip in August and slightly above projections for a flat reading. Core prices, minus energy and food, were also up 0.1% — in line with expectations.
A big morning for the aerospace and defense sector saw early reports from Boeing (NYSE:BA), B/E Aerospace (NASDAQ:BEAV), General Dynamics (NYSE:GD) and Northrop Grumman (NYSE:NOC). A welter of blue chip stocks were in motion after delivering quarterly results: Dow Chemical (NYSE:DOW) climbed 3%. GlaxoSmithKline (NYSE:GSK) rose 2%. Xerox (NYSE:XRX) added 1%.
Yahoo (NASDAQ:YHOO) popped 4% after reporting late Tuesday its third-quarter earnings rose 53%, well above analyst expectations. Revenue rose a better-than-forecast 1%. Mobile revenue topped the $200 million mark, with the company guiding the important growth segment to revenue of $1.2 billion for the year.
FBR Capital upgraded the stock to outperform from market perform, hoisting the price target to 50 from 40. Yahoo shares have been consolidating since a failed breakout attempt from an eight-month cup base in September.
Evolving chip heavyweight Broadcom (NASDAQ:BRCM) jumped 6% before the open. The Irvine, Calif.-based company reported Q3 earnings and revenue above consensus forecasts, and management’s Q4 revenue and margin guidance was in line with analyst expectations.
Broadcom ended Tuesday up 4% so far this week, as it rebounded from a test of support at its 200-day moving average.
Overseas in China, Hong Kong’s Hang Seng bolted 1.4% higher as the Shanghai Composite posted a second day of modest losses. Tokyo’s Nikkei 225 leapt 2.6%, giving it a 4.6% gain so far for the week.
European bourses were sticking close to their opening levels, with major indexes in London, Frankfurt and Paris all up less than 0.2%.
The dollar was trading tight against the euro, but gained on the yen. Commodities were mixed and little changed. The Energy Information Administration reports weekly oil stockpile data at 10:30 a.m. ET.