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Dow Set to Rise, More Banks Report Earnings—and What Else Is Happening in the Stock Market Today

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A wave of U.S. bank earnings hits Thursday.

Spencer Platt/Getty Images

Stocks were rising Thursday, as more major U.S. banks reported earnings and investors awaited the release of key economic data. 

Futures for the Dow Jones Industrial Average indicated an open 220 points, or 0.6%, higher after the index closed flat Wednesday at 34,377. Futures for the S&P 500 and Nasdaq Composite advanced 0.7% and 0.8%.

Bank of America (ticker: BAC) reported good news. The stock rose 2.8% after the company reported a profit of 85 cents a share, beating estimates of 71 cents a share, on revenue of $22.8 billion, above expectations for $21.8 billion. The firm released $1.1 billion of cash reserves that had been set aside to absorb bad credits. CEO Brian Moynihan said the economy has continued to improve. This was a similar report to that of JPMorgan Chase & Co. (JPM), which revealed Wednesday that the bank is releasing billions of dollars in reserves and that the economy is on strong footing. 

Wells Fargo (WFC) stock rose 1.2% after the company reported a profit of $1.17, beating estimates of $1, on revenue of $18.8 billion, above expectations for $18.3 billion. The bank released $1.7 billion of credit loss reserves.

Still, markets await more data this morning. 

Initial jobless claims will hit the wires and investors want to see that the labor market is continuing its recovery, especially as the September employment report was not as strong as anticipated

The producer-price index will also be released, giving investors a chance to gauge how fast costs are rising for companies. Some companies are passing higher costs along to consumers, which could prompt the Federal Reserve to raise interest rates sooner rather than later. 

Overseas, Hong Kong’s Hang Seng Index fell 1.4% amid a blowout reading of Chinese producer price inflation, while in Europe the regional Stoxx 600 was 0.9% higher.

With corporate earnings season in full swing, investors will be particularly attuned to how supply-chain pressures are weighing on company profits. But some analysts remain bullish on earnings.

“Earnings growth and the ‘beat’ rate will likely drop significantly compared with the second quarter’s 88% year-over-year growth and 17% beat rate for the S&P 500,” said Mark Haefele, the chief investment officer at UBS Global Wealth Management. “But we still expect roughly 30% earnings growth in the third quarter, representing a 5% beat.”

“Pent-up demand should drive revenue growth, while pricing power and operating leverage should help offset inflationary pressures,” Haefele added.

Here are five stocks on the move Thursday:

Oil prices ticking up Thursday has boosted major oil companies, with BP (BP) rising 1% and Royal Dutch Shell (RDS.A) moving up 1.2% in London, as TotalEnergies (TTE) lifted 0.8% in Paris and Eni (E) climbed 1.5% in Milan.

Boeing (BA) stock fell 1.1% after news broke that the company’s 787 Dreamliner has part defects. 

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