US open: Stocks rise as investors digest deluge of data, earnings from banking giants

US stocks rose in early trade as invested digested a raft of mostly disappointing data which reinforced the case for the Federal Reserve to stand pat on rates for longer, along with key earnings.

At 1520 BST, the Dow Jones Industrial Average was up 0.4%, the S&P 500 was 0.5% higher and the Nasdaq was up 0.8%.

CPI, jobless claims, Empire manufacturing and Philly Fed in focus

The number of first time unemployment benefits claimants in the US unexpectedly fell last week to match the lowest level in 42 years.

According to the Department of Labor, new claims declined by 7,000 in the week ended 10 October 255,000, compared with analysts' expectations for a modest increase to 270,000.

Meanwhile, the four-week average, which is considered more reliable as it smooths out sharp fluctuations in the more volatile weekly figures, came in at 265,000, down 2,250 from the previous week’s 267,250.

Elsewhere, the US consumer price index fell for a second month in a row in September but was nevertheless stronger than expected when compared with year-ago levels.

The US Bureau of Labor Statistics reported the CPI dropped 0.2% month-on-month in September, in line with analysts’ predictions.

The Empire State manufacturing index improved a tad in October but the results of the survey were still rather poor.

The headline index for the regional survey of factory conditions improved to a reading of -11.36 in October from -14.67 in the month before.

However, October marked the third consecutive reading below -10, the first such occurrence since 2009, the Federal Reserve bank of New York said in a statement. Economists had been expecting a reading of -7.5.

The Philadelphia Fed manufacturing index remained in negative territory for the second month running in October, rising just a touch to -4.5 from -6 in September and falling short of economist’s expectations for a reading of -1.

A reading below zero indicates deteriorating conditions.

Banking behemoths report earnings

Shares in Goldman Sachs shook off opening losses to trade a touch higher despite its third-quarter results missing expectations. Net earnings for the quarter ended 30 September fell to $1.43bn or $290 a share, from $2.24bn or $4.57 a share a year earlier and against expectations of $3.00.

Citigroup shares rallied as the bank’s second-quarter profits beat expectations, jumping 54% to $4.3bn.

Philip Morris International was also on the front foot after the tobacco company’s third-quarter profit and sales came in better than expected.

On the downside, shares in health insurer United Health fell sharply in early trade despite the company posting a 27% rise in revenue for the third quarter, while Netflix slumped after saying late on Wednesday that it is getting fewer US viewers than it had hoped.

In commodities, oil prices were weaker, with West Texas Intermediate down 1.7% to $45.84 a barrel, and Brent down 1% to $48.66 a barrel, while gold futures edged 0.4% higher to $1,1840.

Elsewhere, the dollar was up 0.9% against the euro, 0.3% higher against the pound and 0.2% lower against the yen.