US Equity Futures Mainly Lower Ahead Of Unemployment Claims, GDP Update
Stock index futures were mostly a little lower on Thursday as investors await weekly data on unemployment benefit claims as well as an updated snapshot of first quarter U.S. gross domestic product and other economic data.
What are the main benchmarks doing?
Futures on the Dow Jones Industrial Average YM00,
were up 6 points, or less than 0.1%, to 34,286.
S&P 500 ES00 Futures,
was down 7.35 points, or 0.2%, to 4,185.75.,
Nasdaq-100 NQ00 Futures,
loses 47 points, or 0.3%, to trade at 13,653.25.
On Wednesday, stocks essentially battled for a draw in another low-volume session, with the Dow DJIA,
obtaining a gain of 10.59 points, or less than 0.1%, while the S&P 500 SPX,
increased by 0.2%. The highly technological Nasdaq Composite COMP,
outperformed its peers with an increase of 0.6%.
What drives the market?
Shares are stuck in a hold pattern, with investors focusing on the slowly changing rhetoric from the Federal Reserve when it begins talks about pulling out bond purchases.
On Wednesday, Fed vice chairman oversight Randal Quarles said it would soon be time for Fed officials to start debating the slowdown in central bank bond purchases if the economy continues to improve at its current rate. Federal Reserve Vice Chairman Richard Clarida also said U.S. central bank officials could perhaps start discussing the appropriate time to cut their bond buying program at upcoming policy meetings,
Still, long-term Treasuries yields remain well below their March highs, “and there is no sense of panic in the bond markets over an upcoming debate on reducing the pressure on the market.” Fed, ”Raffi Boyadjian, senior investment analyst at XM, said in a note.
Commercial activity is expected to remain subdued as a three-day weekend approaches. US markets will be closed Monday for the Memorial Day holiday.
The S&P 500 Index is largely unchanged over the past month, with value indices significantly outperforming growth and large-cap stocks beating small-caps, noted Mark Hackett, chief investment researcher at Nationwide. Energy, Financials and Materials were the best performers, while Consumer Discretionary, Technology and Utilities were negative.
“As the cycle continues to mature, quality companies on the growth and value spectrum that have strong competitive positions, healthy balance sheets and multiple growth levers are expected to emerge as leaders, while ‘ Historical stocks ‘expensive on the growth side and deep value could struggle,’ he said.
Even stocks GameStop Corp.
and AMC Entertainment Holdings Inc.
continued to steal the show, with stocks soaring for a third day on Wednesday as retail traders crammed into what is now another squeeze on hedge funds and other institutional investors to short sell . Shares of GameStop fell 2.9% in pre-market trading, while AMC fell 5%.
Weekly data on U.S. unemployment claims is due 8:30 a.m. EST, with first-time unemployment claims in the week ended May 22 expected to drop to 425,000 against 444,000 a week earlier.
At the same time, a revised analysis of the first quarter’s gross domestic product should show that the economy grew at an annualized pace of 6.6%. April’s durable goods orders, also due at 8:30 am, are expected to rise 0.9%.
An April pending home sales index forecast for 10 a.m. is expected to slow to 1% after reading 1.9% in March.
Which companies are targeted?
Actions of Nvidia Corp.
were stable in pre-market trading after the gaming specialist released results Wednesday night that broke several quarterly sales records and forecast revenue growth of up to $ 1 billion above Wall Street estimates for the current quarter against a backdrop of a global chip shortage.
shares fell 3.5% after the software company on Wednesday afternoon revealed losses were increasing at a rate similar to its soaring sales totals.
Shares fell 3.8% after the cloud-based software company released its first quarter tax results on Wednesday night.
Actions of Workday Inc.
were down 1.1% after the enterprise cloud software company attributed its first-quarter results Wednesday night to an improving market as companies prepare their businesses for a “post-pandemic world.”
Burlington Stores Inc.
Shares rose 2.9% after the discount retailer blew up earlier earnings estimates for its fiscal first quarter on Thursday.
Best Buy Co. Inc.
Shares rose 2.8% after the electronics retailer generated profits and revenue that beat expectations and said it saw second-quarter same-store sales increase 17%.
Elf Beauty Inc.
On Wednesday night, results beat Wall Street’s expectations for its fiscal fourth quarter and said it expects an 8% to 10% increase in sales in fiscal 2022. Shares fell more than 3%.
said on Wednesday that profits rose in the most recent period while revenues rose 42%, reflecting a pandemic increase in sales of home products. Shares rose 4.9%.
Actions of Zuora Inc.
were up 0.5% after the maker of software for subscription-based businesses delivered results Wednesday night that beat Wall Street expectations.