U.S. Stock Indexes Poised for Subdued Open as Investors Await Powell's Comments

The producer price index (PPI) for final demand rose 0.2% on a monthly basis in October, in line with forecasts, though the annual rise of 2.4% was a touch higher than expectations.

U.S. stock indexes were set to open largely unchanged on Thursday after data showed a moderate increase in monthly producer prices, as expected, while jobless claims fell last week.

Traders awaited comments from Federal Reserve Chair Jerome Powell later in the day for more clarity on the outlook for interest rates.

The producer price index (PPI) for final demand rose 0.2% in October, matching forecasts. However, the annual rise of 2.4% was a touch higher than expectations.

Jobless claims dropped 4,000 to a seasonally adjusted 217,000 for the week ended Nov. 9, lower than forecast and a sign of continued strength in the labor market.

"Investors appear to be taking stock now, unsure about increasing their exposure further," said David Morrison, senior market analyst at Trade Nation.

Traders now see a 76.1% chance of a 25-basis point interest rate cut at the Fed's December meeting, down from 82% prior to the data, according to the CME FedWatch tool.

Bets on a December cut had increased after Wednesday's consumer price index data, which was in line with forecasts.

Powell will provide an update on his economic outlook to business leaders in Dallas, a day after some Fed policymakers shifted their attention back to inflation risks as they weighed when, and how fast and far, to cut interest rates.

The focus on inflation comes despite the Fed's preferred measure of price pressures remaining below the central bank's 2% target for a third straight month.

However, policies under President-elect Donald Trump's administration are widely expected to add to inflationary pressures.

Changing inflation expectations are clearly visible in the bond market, where the U.S. 10-year Treasury yield (US10YT=TWEB) has ticked up to its highest since July, which traders said could limit gains for rate-sensitive equities.

At 08:25 ET, Dow E-minis YM1! were up 76 points, or 0.17%, S&P 500 E-minis ES1! were down 1.75 points, or 0.03%, and Nasdaq 100 E-minis NQ1! were down 16.25 points, or 0.08%.

The major averages hit record highs on Wednesday after the CPI data, and the S&P 500 is now up about 25% for the year.

Among early movers, Walt Disney (DIS) soared 9% after reporting quarterly earnings that topped Wall Street's estimates.

Shares of cryptocurrency-focused companies rose as bitcoin BTCUSD continued to climb on hopes of favorable policies under Trump. Coinbase Global (COIN) gained 2.6%, miner MARA Holdings (MARA) rose 2.2% and bitcoin buyer MicroStrategy (MSTR) was up 3.2% in premarket trading.

Tapestry (TPR) gained 9.5% after the Coach parent said it was terminating its $8.5 billion deal for Michael Kors (KORS) owner Capri Holdings (CPRI) after the deal was blocked by a U.S. judge. Capri's shares fell 5.6%.

Remarks from New York Fed President John Williams are expected later in the day.

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