Stocks were poised to rise at the open on Wednesday, indicating the S&P 500 will build on its biggest gain in nearly a month, after strong data and earnings from Bank of America pointed to continued improvement in the economy.
Bank of America shares climbed 2.7 percent to $17.22 before the opening bell after the second-largest U.S. bank reported a stronger-than-expected quarterly profit, driven by a steep fall in provisions to cover bad loans.
Futures initially dipped after data showed the seasonally adjusted producer price index rose 0.4 percent last month, the biggest rise since June, after slipping 0.1 percent in November. However, inflation pressures remained benign.
In addition, the New York Federal Reserve’s “Empire State” index of general business conditions rose to 12.51 in January, its highest since May 2012. Economists polled by Reuters had expected a reading of 3.75.
“That is in line with the theme the economy is slowly but surely accelerating,” said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York.
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