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* U.S. producer prices fall in July, underlying inflation
* Disney tops Netflix on streaming subscribers, shares jump
* Bumble cuts annual rev view as Ukraine war, competition
* Futures up: Dow 0.75%, S&P 0.69%, Nasdaq 0.71%
Aug 11 (Reuters) - Wall Street was on Thursday set to extend
a rally from the previous session as fresh evidence of cooling
inflation further cemented expectations of a smaller increase in
Data showed U.S. producer prices unexpectedly fell in July
amid a drop in the cost for energy products, bolstering the
chance of a 50-basis point hike by the Federal Reserve in
September instead of 75 basis points.
The indexes had sharply rallied on Wednesday following a
softer-than-expected rise in consumer prices. The gains came
even as policymakers left no doubt they will tighten monetary
policy until price pressures are fully broken.
"Rates still have to move higher even though in the very
short run the market is reacting positively... Inflation is a
bit more moderate, but inflation has not disappeared as a
problem as yet," said Chuck Lieberman, chief investment officer
at Advisors Capital Management.
Traders are now pricing in a more than 67.5% chance that the
Fed will hike interest rate by 50 basis points.
Meanwhile, the number of Americans filing new claims for
unemployment benefits rose for the second straight week,
indicating further softening in the labor market despite tight
As of the last close, the Nasdaq was more than 20%
above its June low, but still short of its peak in November to
confirm a new bull market.
Despite its recent rebound, the tech-heavy index is down
17.9% so far this year as fears of an aggressive monetary policy
sapped appetite for equities, particularly high-growth stocks.
At 8:42 a.m. ET, Dow e-minis were up 248 points, or
0.75%, S&P 500 e-minis were up 29.25 points, or 0.69%,
and Nasdaq 100 e-minis were up 95 points, or 0.71%.
Banks looked set to extend their climb, with Bank of America
up 1.9% in premarket trading. Megacap growth and
technology stocks that led the overnight rally also advanced.
"People are projecting into the banks that there will be
much more lending going forward if the economy does fine and
inflation will decline," said Hugh Anderson, managing director
at Hightower Advisors.
In earnings-driven news, Bumble Inc dropped 6.7% on
cutting its annual revenue forecast, taking a hit from the
Ukraine war while also grappling with stiff competition from
rivals such as Match Group Inc in the online dating
Walt Disney jumped 9.6% as the media giant edged
past rival Netflix Inc with 221 million streaming
customers and announced it will increase prices for customers
who want to watch Disney+ or Hulu without commercials.
(Reporting by Bansari Mayur Kamdar and Aniruddha Ghosh in
Bengaluru; Editing by Arun Koyyur)