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Stocks Mostly Up Pre-Bell Ahead of Producer Prices Report

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Stocks Mostly Up Pre-Bell Ahead of Producer Prices Report

The main US stock measures were mostly pointing higher in Thursday's premarket activity as traders await last month's wholesale inflation data.

The S&P 500 edged up 0.1%, and the Dow Jones Industrial Average increased 0.2% before the opening bell, while the Nasdaq was down 0.2%. The indexes closed Wednesday trading in the red for the third consecutive session.

Last month's producer price index, a measure of wholesale prices, is scheduled to be released at 8:30 am ET. Official data is expected to show that producer prices rose 0.4% and 5.3% in August on sequential and annual bases, respectively, according to a Bloomberg-compiled consensus.

The consumer price index for August is scheduled for release on Friday.

Federal Reserve Chair Kevin Warsh said late last month that the central bank should focus on its price stability mandate, in what came across as hawkish remarks amid concerns among other Fed officials over elevated inflation.

"Rising oil prices raise the risk of further inflationary pressures coming down the pipeline, increasing the argument for the (Federal Reserve) to act sooner than later," Stifel Chief Economist Lindsey Piegza said Wednesday in a report e-mailed to.

Markets are pricing in a 61% probability that the Fed will raise the benchmark lending rate by 25 basis points, according to the CME FedWatch tool.

Treasury yields were trending upwards, with the two-year rate rising 1.3 basis points to 4.44% and the 10-year rate adding 1.9 basis points to 4.86%.

On Wednesday, the US Treasury Department disclosed a plan to repurchase up to $6 billion in longer-term government bonds, triple the amount initially outlined to investors. Last month, the Treasury announced it was upsizing its liquidity support buyback operations for longer-dated securities by "at least double" to $4 billion per operation.

West Texas Intermediate crude oil rose 1.5% to $97.52 a barrel, while Brent moved up 1% to $102.18.

President Donald Trump warned Iran against activity at a suspected nuclear site on Pickaxe Mountain, CNBC reported. "We notice there's a little activity at Pickaxe," Trump reportedly said Wednesday. "I would advise Iran not to get cute because we will have to hit them very hard."

Iran reportedly said Wednesday it attacked 10 ships near the Strait of Hormuz. The attacks followed American forces destroying five Iranian crude oil carriers in response to Tehran firing ballistic missiles at a US navy warship.

Trump's top administration advisers have raised privately the prospect of the Iran war dragging on through the remainder of his term, The Wall Street Journal reported.

Thursday's economic calendar also has the weekly jobless claims bulletin at 8:30 am, followed by the existing home sales report for August at 10 am. The weekly EIA domestic petroleum inventories report is out at 12 pm.

Shares of Apple (AAPL) gained 1.2% pre-bell as the technology giant unveiled its first foldable smartphone on Wednesday. Meta Platforms (META) added 1.3% after finishing the previous trading session up 6.6%.

AeroVironment (AVAV) spiked 6.5% while American Eagle Outfitters (AEO) dropped 12% after reporting their latest financial results.

Oracle (ORCL), Adobe (ADBE), Copart (CPRT) and RH (RH) are expected to release their quarterly earnings after the markets close. Macy's (M) posts its results before the bell.

Gold nudged down 0.5% to $4,438 per troy ounce, while bitcoin dipped 0.6% to $77,915.

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