Stock futures opened slightly lower Wednesday evening as investors awaited the Labor Department’s weekly jobless claims report and another handful of earnings results before the bell.
During the regular session Wednesday, the S&P 500 ticked down slightly as investors took some profits following the blue-chip index’s record close on Tuesday. Market participants also reacted to the cautious tone struck in the Federal Open Market Committee’s July meeting minutes, as well as officials’ apparent unreadiness to clearly signal their guidance on the path forward for interest rates at their next meeting. Policymakers also appeared to shirk the prospects of adopting formal yield curve targets in the near-term.
On the US economy, US central bankers agreed that “the ongoing public health crisis would weigh heavily on economic activity, employment, and inflation in the near term and was posing considerable risks to the economic outlook over the medium term.”
“Despite evident concerns that the resurgence in infections could weigh on the economy, the majority of officials were content to wait for more incoming information,” Paul Ashworth, Capital Economics chief US economist, said in a note. “With the infection rate falling again, there may be less urgency to add to the monetary policy stimulus. But the other thing that stands out from the minutes is that Fed officials still believe ‘strong fiscal policy support’ is ‘necessary to encourage expeditious improvements in labor market condition. With Congress failing to extend the fiscal stimulus, more of the burden will fall to monetary policy.”
On Thursday, investors are set to receive yet another print on the state of the recovery in the US economy in the form of the Labor Department’s weekly unemployment claims report. Consensus economists expect another 920,000 individuals filed new jobless claims last week, coming in below the 1 million mark for a second time since the start of the pandemic, but holding still well above the pre-pandemic record of 665,000 new claims from March 2009.
Despite the muted moves of the overall market during Wednesday’s regular session, some individual stocks outperformed strongly. Target (TGT) rallied 12.7% to close at a record high Wednesday, after the big-box retailer reported its fastest-ever sales growth in the second quarter, driven by a 195% surge in e-commerce sales. Shares added mostly to gains in late trading. Lowe’s (LOW) shares closed modestly higher, but hovered near the flat line after the home-improvement giant reported a 35% jump in US DIY comparable sales, driven by a surge in consumers taking on redecorating projects during the pandemic.
Thursday morning, companies including Alibaba (BABA), Estée Lauder (EL), BJs Wholesale Club Holdings (BJ) are set to report quarterly earnings results.
—
Here were the main moves in equity markets, as of 6:01 p.m. ET:
-
S&P 500 futures (ES=F): 3,370.25, down 2.5 points or 0.07%
-
Dow futures (YM=F): 27,628.00, down 4 points, or 0.01%
-
Nasdaq futures (NQ=F): 11,326.5, down 5.5 points, or 0.05%
NEW YORK, NEW YORK – MAY 26: Television journalists and others gather across from the entrance to the New York Stock Exchange (NYSE) on the first day that traders are allowed back onto the historic floor of the exchange on May 26, 2020 in New York City. While only a small number of traders will be returning at this time, those that do will have to take temperature checks and wear face masks at all times while on the floor. The Dow rose over 600 points in morning trading as investors see economic activity in America picking up. (Photo by Spencer Platt/Getty Images)
—
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and reddit.
Find live stock market quotes and the latest business and finance news
For tutorials and information on investing and trading stocks, check out Cashay