NEW YORK: US stocks gained at the open of trading Wednesday, shrugging off another month of high inflation data as good corporate earning reports rolled in.
Before markets opened, JPMorgan Chase reported a profit jump in the third quarter as the improving economic outlook allowed it to include in earnings $2.1 billion set aside earlier in the pandemic for potential loan defaults.
That overtook Labor Department data showing inflation remained at a high 5.4 percent in September compared to the same month last year, with rent and food price increases playing a large role in the increase.
About 10 minutes into trading, the benchmark Dow Jones Industrial Average was up 0.2 percent at 34,431.70. The broad-based S&P 500 gained 0.3 percent to 4,363.84.
The tech-rich Nasdaq Composite Index rose 0.7 percent to 14,563.83.
US stocks dip amid global growth worries
The IMF's projection of 5.9 percent global growth in 2021 and 4.9 percent in 2022 was also fueling positive sentiment. JPMorgan Chase Chief Executive Jamie Dimon called the forecast "great numbers," particularly with economies still reeling from Covid-19.
Traders are looking ahead to the release of minutes from the Federal Reserve policy setting committee's September meeting later on Wednesday.
The document could offer details on how the central bankers view the ongoing inflation spike, and the rationale behind their announcement that they may soon start ending their pandemic stimulus policies.
Major US banks Wells Fargo, Citigroup and Bank of America will report earnings on Thursday, and Friday will bring closely watched government retail sales data.
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