Thursday morning, U.S. stock-index futures were largely flat to lower, ahead of a batch of economic reports, including weekly jobless benefit claims, which are due at 8:15 a.m. Eastern. What is the current state of equity benchmarks?
The Dow Jones Industrial Average futures YMU21, +0.13 percent YM00, +0.13 percent rose 6 points to 34,405, or less than 0.1 percent.
Futures on the S&amp
Nasdaq-100 futures NQU21, -0.14 percent NQ00, -0.14 percent were down 36.50 points at 14,512.75, a 0.3 percent drop.
The S&P 500 SPX, +0.13 percent jumped 5.70 points, or 0.1 percent, to 4,297.50 on Wednesday, surpassing its total number of record closes in 2020; the Dow DJIA, +0.61 percent rose 210.22 points, or 0.6 percent, to 34,502.51, bringing the blue-chip benchmark within 1% of its May 7 record close. The Nasdaq Composite Index COMP, -0.17% fell 24.38 points, or 0.2 percent, to 14,503.95, marking the first time it had fallen in three sessions.
What is the market’s driving force? Investors are taking a cautious approach to July and the start of the third quarter. The economy is rebounding from the COVID pandemic, but there are still concerns about the job market and inflation, which might undermine the euphoric feeling that has kept all three major stock indexes at or near all-time highs following their best first-half results since 2019. The question remains as to how investors will react to economic news in the light of the likelihood of a Federal Reserve policy shift away from loose money. In a research note, Pierre Veyret, technical analyst at ActivTrades, wrote, “While excellent data will be good news for the overall economy, it might also rekindle inflation fears and tapering debates, which could substantially hurt market mood over the summer season.” The weekly data on jobless benefit claims in the United States for the week ending June 26 is projected to show claims at 395,000, down from 411,000 the week before. The findings came ahead of Friday’s monthly payrolls estimates from the Labor Department and a better-than-expected update on private-sector employment from ADP on Wednesday. Jobless claims are expected to start falling again in September, if only because emergency federal relief programs will be ending by then, forcing some people to look for work. However, the data has been erratic, as seasonal adjustments in the data, which usually occur at the start of the summer, have been difficult due to the pandemic. Meanwhile, at 9:45 a.m. ET, IHS Markit will release its final report on manufacturing activity purchasing managers’ indexes for June, followed by a more closely watched reading from the Institute for Supply Management at 10.00 a.m. At 10 a.m., a report on construction spending is also due. Atlanta Federal Reserve President Raphael Bostic is scheduled to talk at 2 p.m., among the Fed speakers. In an interview with Bloomberg TV on Wednesday, Dallas Fed President Rob Kaplan said the Fed should start slowing down, or tapering, its asset purchases before the end of the year. Investors may also be keeping an eye on international headlines, as President Xi Jinping celebrated the Chinese Communist Party’s 100th anniversary on Thursday with a stern address urging foreign nations not to “bully” China unless they want “their skulls bashed.” In public health news, the World Health Organization announced that a 10-week reduction in new cases in Europe has ended, with cases increasing by 10% last week. According to the Guardian, WHO regional director for Europe Hans Kluge said the spike is due to reduced regulations and increasing mobility, and that if discipline isn’t maintained, a new wave will arise. Which businesses are being scrutinized?
In premarket trading on Thursday, shares of McCormick & Co. MKC climbed 1.6 percent after the spice and flavorings producer topped expectations for the fiscal second quarter and upped guidance.
MKS Instruments Inc. is a company that manufactures instruments.
MKSI announced on Thursday that it has struck an agreement to buy Atotech Ltd. ATC in a cash-and-stock deal worth $5.1 billion in equity and $6.5 billion in enterprise value.
Elliott Management has called on GlaxoSmithKline GSK, -0.33 percent to appoint new directors to its board of directors and launch a process to determine the future of Emma Walmsley, the company’s troubled CEO.
Late Wednesday, Krispy Kreme Inc. priced its initial public offering at $17 per share, well below the estimated range of $21 to $24 per share. The stock is set to start trading on the Nasdaq on Thursday under the ticker symbol “DNUT” DNUT./n
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