By Saumya Vaishampayan
U.S. stock futures were little changed Wednesday, pausing after
a three-day rally that carried the Dow back into positive territory
for the year.
Dow Jones Industrial Average futures shed two points to 16545.
S&P 500 futures lost two points, or 0.1%, to 1936 and
Nasdaq-100 futures fell two points, or 0.1%, to 3970. Changes in
stock futures don't always accurately predict stock moves after the
opening bell.
Stock futures were little changed after data showed U.S.
consumer prices rose 0.1% in September from a month earlier, the
Labor Department said. The result was in line with
expectations.
Stocks surged Tuesday, with the Dow rising 1.3% to 16614.81. The
S&P 500 jumped 2% to 1941.28 and the Nasdaq Composite gained
2.4% to 4419.48. It was the biggest one-day point gain for the
S&P and Nasdaq since November 2011.
Stocks have whipsawed in the past month as investors grappled
with the threat of deflation in Europe, slowing growth in China and
fears about the spread of the Ebola virus. The Dow hit its highest
close of 2014 on Sept. 19, subsequently falling 6.7% to a low on
Oct. 16. Stocks have gained in recent sessions, leaving the Dow off
3.85% from its 2014 record, through Tuesday's close.
Still, with low interest rates, many investors say there are few
alternatives to investing in U.S. stocks. The Federal Reserve is on
track to end its bond-buying program, paving the way for an
eventual increase in interest rates. The Fed has kept short-term
rates near zero since December 2008.
Peter Kenny, chief market strategist at Clearpool Group, said
improving economic data and earnings, including third-quarter
results at Yahoo Inc. and Halliburton Co., should lift stocks in
the longer run.
"Our data has been extremely consistent and sustainable in terms
of its rate of improvement," he said.
European shares rose, with the Stoxx Europe 600 up 0.3%. On
Tuesday, European shares notched their second-largest daily gain of
2014 after reports that the European Central Bank is considering
purchases of corporate bonds if more aggressive stimulus measures
are needed.
Japanese stocks surged after data showed Japanese exports rose
6.9% in September from a year ago, boosted in part by exports of
parts for the new iPhones.
The yield on the 10-year Treasury note inched higher to 2.217%
from 2.206% on Tuesday. Yields fall as prices rise.
In commodity markets, crude-oil futures rose 0.4% to $82.79 a
barrel. Gold futures shed 0.6% to $1243.80 an ounce.
Johnson & Johnson said it would begin testing an Ebola
vaccine in humans in January. If approved by health regulators,
J&J said it could have 250,000 doses available in May. Shares
rose 1.4% premarket.
Amgen Inc. is facing pressure from activist investor Daniel
Loeb's Third Point LLC to break itself into two. Amgen shares
inched down 0.2% premarket.
In earnings news, Yahoo Inc. said its third-quarter profit
surged as total revenue beat its own forecast. Shares rose 5.1%
premarket.
Write to Saumya Vaishampayan at saumya.vaishampayan@wsj.com