(Updates with economic data, recent oil price movement, world markets' overview and corporate stock movements.)
US equity futures were mixed pre-bell Thursday as traders evaluated concerns surrounding artificial intelligence overspending and the increased possibility of an interest-rate increase by the Federal Reserve.
Dow Jones Industrial Average futures were 0.3% higher, S&P 500 futures were down 0.4%, and Nasdaq futures were 1.4% lower.
Investor reservations regarding AI firm overspending were highlighted by a decline in CoreWeave (CRWV) stock, which was down 4.9% premarket following a 16% fall at Wednesday's close. The company's yield on its 9.625% senior unsecured notes due 2032 rose to over 15% midday on Wednesday from 13% at the start of the month, according to the Trace bond pricing information service. Chief Executive Officer Mike Intrator said the plunge in the company's stock and bond prices is due to the market acting "irrationally," Bloomberg News reported.
The consumer price index rose 0.6% in September, as expected in a Bloomberg-compiled poll, and from 0.4% in August, according to the US Bureau of Labor Statistics. The CME FedWatch tool showed the probability of the Federal Reserve raising its target rate by 25 basis points in October is at 31.6%, almost doubling from 17.7% a week ago.
Traders evaluated the latest round of corporate earnings, with Taiwan Semiconductor Manufacturing (TSM) reporting higher Q3 net income and revenue.
Oil prices were mixed, with front-month global benchmark North Sea Brent crude down 1.8% at $104.19 per barrel and US West Texas Intermediate crude 0.1% higher at $95.12 per barrel.
The US Producer Price Index, released at 8:30 am ET, rose 1.3% in September following a 0.5% gain in August, compared with an expected 0.6% increase in a survey compiled by Bloomberg. Initial jobless claims climbed to 199,000 in the week ended Oct. 10 from 198,000 in the previous week, compared with expectations for an increase to 200,000.
US retail sales rose 0.8% in September, following a 1.3% increase in the prior month and compared with expectations for a 0.3% gain. The Philadelphia Federal Reserve's monthly manufacturing index fell to 20.9 in October from 37.8 in September, compared with expectations for a decline to a reading of 28.0. The Empire State manufacturing index increased to 25.5 in October versus 7.6 in the prior month, compared with expectations for an increase to a reading of 12.0.
Federal Reserve Chairman Kevin Warsh and Cleveland Fed President Beth Hammack are the Fed speakers for Thursday.
In other world markets, Japan's Nikkei closed 4.9% lower, Hong Kong's Hang Seng ended 1% lower, and China's Shanghai Composite finished 1.6% lower. Meanwhile, the UK's FTSE 100 was up 0.8%, and Germany's DAX index was 0.3% lower in Europe's early afternoon session.
In equities, Taiwan Semiconductor Manufacturing (TSM) stock was down 3.3% after the chipmaker reported its Q3 financial results. Charles Schwab (SCHW) shares fell 4% despite the company posting higher adjusted earnings and revenue for Q3. PNC Financial Services (PNC) stock dropped 2% after the company missed analysts' consensus on Q3 revenue.
On the winning side, Eli Lilly (LLY) shares rose 1.8% after Adlai Nortye (ANL) said it signed clinical trial collaboration and supply agreements with the company and Merck KGaA to evaluate its investigational cancer drug AN4035 in combination with cetuximab. AstraZeneca (AZN) stock was up 3.4% after the company said it signed a drug discovery and licensing deal with Insitro to develop treatments for fatty liver disease and heart muscle disorders. TotalEnergies (TTE) shares climbed 1.2% after the company said it expects Q3 hydrocarbon production of 2.45 million to 2.50 million barrels of oil equivalent per day, up more than 4% year over year, excluding the impact of the Middle East conflict.
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