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Published: Sat, October 15, 2016
Economy | By Melissa Porter

Futures rise on strong China data, JPMorgan results


Slowing growth in China could decelerate the U.S.Federal Reserve's plans for future interest-rate increases, some traders said, which may be a reason for Thursday's drop.

The Dow Jones industrial average dipped 34 points, or 0.2 percent, to 18,110 as of 2:25 p.m. The main price-weighted index briefly traded below 18,000 after the open for the first time since early July. The diversified utilities industry group was up 1.6%, although most stocks in it are barely coming off their lows.

Data from China showed producer prices rose unexpectedly in September, marking the first increase in almost five years and easing some worries about the health of the world's second largest economy. Fertilizer maker Mosaic shed 93 cents, or 3.9 percent, to $22.86 while chemicals maker DuPont lost $1.01, or 1.5 percent, to $67.77.

The Fed had on Wednesday released the minutes of its last rate-setting meeting that showed several policymakers felt a move was warranted "relatively soon" if the United States economy continued to strengthen. Gold rose 0.3% to $1,255.00 an ounce, while the yield on the 10-year U.S.Treasury note fell to 1.739% from 1.778% on Wednesday.

Concerns about the global economy contributed to the early weakness on Wall Street following the release of disappointing Chinese trade data.

"China's export numbers are putting pressure on the market, while the Fed prepares to raise interest rates", said Robert Pavlik, chief market strategist at Boston Private Wealth. Separately, Business Inventories for August (consensus +0.1%) and the initial reading of the University of Michigan Consumer Sentiment Index for October (consensus 92.4) will both cross the wires at 10:00 ET.

Central banks around the globe are creating vast threats that are staring every investor in the eye, but too many are choosing to ignore them. For the week, the Dow closed off 0.6%, the S&P 500 ended with a weekly decline of 1% and the Nasdaq Composite closed off 1.5%.

In other energy trading, the price of natural gas jumped 13 cents, or 4.1 percent, to $3.34 per 1,000 cubic feet.

The Nasdaq composite rose 0.83 points to 5,214.16.

Wynn Resorts is scheduled to report after market close on Thursday, while US banks start reporting from Friday.

Today's trading volume fell came in below the recent average of 930 million as 879 million shares changed hands at the NYSE floor. China reliance on credit has recently attracted the ire of the Bank for International Settlements and the International Monetary Fund.

Financial stocks in the S&P 500 rose as much as 1.5% before trimming the increase to 0.5%, as JPMorgan Chase (-0.3%), Citigroup (+0.3%) and Wells Fargo (-0.1%) reported better than expected earnings; some analysts said the results were not strong enough to offset concerns about tepid economic growth.

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