U.S. Stock Futures Hover Near Even

By Saumya Vaishampayan 

U.S. stock futures were little changed Wednesday, pausing after a three-day rally that carried the Dow back into positive territory for the year.

Dow Jones Industrial Average futures shed two points to 16545. S&P 500 futures lost two points, or 0.1%, to 1936 and Nasdaq-100 futures fell two points, or 0.1%, to 3970. Changes in stock futures don't always accurately predict stock moves after the opening bell.

Stock futures were little changed after data showed U.S. consumer prices rose 0.1% in September from a month earlier, the Labor Department said. The result was in line with expectations.

Stocks surged Tuesday, with the Dow rising 1.3% to 16614.81. The S&P 500 jumped 2% to 1941.28 and the Nasdaq Composite gained 2.4% to 4419.48. It was the biggest one-day point gain for the S&P and Nasdaq since November 2011.

Stocks have whipsawed in the past month as investors grappled with the threat of deflation in Europe, slowing growth in China and fears about the spread of the Ebola virus. The Dow hit its highest close of 2014 on Sept. 19, subsequently falling 6.7% to a low on Oct. 16. Stocks have gained in recent sessions, leaving the Dow off 3.85% from its 2014 record, through Tuesday's close.

Still, with low interest rates, many investors say there are few alternatives to investing in U.S. stocks. The Federal Reserve is on track to end its bond-buying program, paving the way for an eventual increase in interest rates. The Fed has kept short-term rates near zero since December 2008.

Peter Kenny, chief market strategist at Clearpool Group, said improving economic data and earnings, including third-quarter results at Yahoo Inc. and Halliburton Co., should lift stocks in the longer run.

"Our data has been extremely consistent and sustainable in terms of its rate of improvement," he said.

European shares rose, with the Stoxx Europe 600 up 0.3%. On Tuesday, European shares notched their second-largest daily gain of 2014 after reports that the European Central Bank is considering purchases of corporate bonds if more aggressive stimulus measures are needed.

Japanese stocks surged after data showed Japanese exports rose 6.9% in September from a year ago, boosted in part by exports of parts for the new iPhones.

The yield on the 10-year Treasury note inched higher to 2.217% from 2.206% on Tuesday. Yields fall as prices rise.

In commodity markets, crude-oil futures rose 0.4% to $82.79 a barrel. Gold futures shed 0.6% to $1243.80 an ounce.

Johnson & Johnson said it would begin testing an Ebola vaccine in humans in January. If approved by health regulators, J&J said it could have 250,000 doses available in May. Shares rose 1.4% premarket.

Amgen Inc. is facing pressure from activist investor Daniel Loeb's Third Point LLC to break itself into two. Amgen shares inched down 0.2% premarket.

In earnings news, Yahoo Inc. said its third-quarter profit surged as total revenue beat its own forecast. Shares rose 5.1% premarket.

Write to Saumya Vaishampayan at [e-mail]