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Dow Futures Higher After Wednesday’s Rally; Disney Shares Soar

Published 11/08/2022, 12:12
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By Noreen Burke

Investing.com -- U.S. stock futures were higher on Thursday, following strong gains in the previous session after softer-than-expected inflation data, while Disney shares jumped on a strong earnings report.

At 06:52 ET (10:52 GMT), the Dow futures contract was up 130 points or 0.4%, S&P 500 futures traded 12 points or 0.3% higher, and Nasdaq 100 futures were up 0.18%.

All three main indices on Wall Street rallied on Wednesday after signs of slowing inflation fanned hopes that the Federal Reserve may pivot to a slower pace of interest rate increases.

The monthly rate of inflation was flat in July, after advancing 1.3% in June, but it was still up 8.5% compared to a year ago, official data showed.

But comments by Fed policymakers following the release of the inflation figures dampened some market optimism.

The Fed is "far, far away from declaring victory" on inflation, Minneapolis Fed head Neel Kashkari said Wednesday. His comments were echoed by San Francisco Fed President Mary Daly who warned it is far too early to "declare victory," while Chicago Fed President Charles Evans said inflation was still "unacceptably" high.

Disney (NYSE:DIS) shares surged higher after its third quarter results showed that it had taken the lead in the global streaming competition, edging past rival Netflix (NASDAQ:NFLX) with a total of 221 million streaming customers.

The entertainment giant also lowered its long-term subscriber forecast for Disney+ customers to between 215 million and 245 million by the end of September 2024, blaming the loss of cricket rights in India. That is down from the 230 million to 260 million which it had been forecasting.

Earnings results are set to continue Thursday with results from Rivian Automotive (NASDAQ:RIVN), Warby Parker (NYSE:WRBY) and Poshmark (NASDAQ:POSH) set to be released.

Other companies in the spotlight include Sonos (NASDAQ:SONO) and Bumble (NASDAQ:BMBL) with both stocks sharply lower premarket after slashing their full-year guidance.

On the economic calendar, PPI data for July is due at 08:30 ET (12:30 GMT), the same time as the release of the weekly initial jobless claims number.

Oil prices were higher amid renewed concerns over the supply outlook following a report by the International Energy Agency.

U.S. crude futures were up 0.86% at $92.70 a barrel, while the Brent contract was up 0.8% to $98.19 a barrel.

Meanwhile, gold futures slid 0.4% to $1,805.80/oz, while the euro was 0.3% higher at $1.0330.

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