[BRIEFING.COM] S&P futures vs fair value: -4.80. Nasdaq futures vs fair value: -10.00.
Equities are set to open Thursday's session a step below where they settled on Wednesday as the S&P 500 futures trade five points, or 0.2%, below fair value.
JPMorgan Chase (JPM 97.48, +0.64) and Citigroup (C 75.46, +0.53) kicked off the third quarter earnings season this morning, reporting better-than-expected earnings and revenues. The two financial heavyweights are up around 0.6% apiece in pre-market action as a result, looking to give the S&P 500's financial sector a boost at the opening bell.
On the downside, Juniper Networks (JNPR 25.35, -1.51) is lower by 5.3% after lowering its revenue guidance for the third quarter. Also, Micron (MU 41.07, -0.54) has lost 1.3% after announcing that it will increase its upcoming common stock offering to $1.2 billion from $1.0 billion.
The Producer Price Index increased 0.4% during the month of September, hitting the Briefing.com consensus estimate. Meanwhile, the core Producer Price Index, which excludes food and energy, came in hotter than expected, showing a month-over-month increase of 0.4% (Briefing.com consensus +0.2%). Year-over-year, the core PPI is now up 2.2%.
Whether or not the increase in producer prices will carry over to consumer prices remains to be seen, but today's reading further strengthens the argument for a December rate hike nonetheless.
Investors also received the weekly Initial Claims Report, which came in better than expected, decreasing by 15,000 to 243,000 (Briefing.com consensus 255,000). As for continuing claims, they decreased by 32,000 to 1.889 million, which is the lowest level in nearly 44 years.
Today's last economic report--the Treasury Budget for September--will be released at 14:00 ET.
U.S. Treasuries are trading modestly higher this morning, with the yield on the benchmark 10-yr Treasury note slipping two basis points to 2.33%.