Markets: U.S. futures rise ahead of jobless data
Wall Street was headed higher as markets opened Thursday ahead of the government’s latest unemployment claims and a big batch of corporate earnings.
Benchmark S&P 500 futures were up 0.5%, while Dow Jones Industrial futures were up 0.2% before the bell.
US markets closed mixedly on Wednesday after officials expected more US rate hikes to combat stubborn inflation in the minutes of a meeting of the Federal Reserve Board. .
The Fed’s main lending rate is 4.50% to 4.75%, up from near zero a year ago. He said he would not cut interest rates this year.
A recent Federal Reserve memo indicated that members expected a “continued rise” in key lending rates to slow the economy. That dampened hopes for a rate cut this year.
“The need for ‘higher long-term’ interest rates has become apparent,” Vishnu Varasan of Mizuho Bank said in a report.
Aggressive Federal Reserve rate hikes have slowed inflation, but there is little indication that it has had a significant impact on the job market or the wider economy. Recent Data on Employment, Retail Sales and Inflation indicates that economic activity remains strong.
Later Thursday, the Labor Department will release its weekly report on unemployment claims, which will act as a proxy for layoffs. Unemployment assistance applications have fallen below 200,000 for the fifth straight week, running counter to his Fed’s goal of easing the job market.
The Commerce Department released its second estimate of how the US economy fared in the fourth quarter late Thursday. Initial estimates put the U.S. economy expanding at a pace of 2.9% annually from October to December, heading into 2022, given the pressure of high interest rates and widespread fears of a looming recession. It proved to be a powerful end.
Moderna was down more than 2% ahead of Bell after reporting a 70% drop in fourth-quarter earnings as sales of its COVID-19 vaccine fell and drugmakers caught up with royalty payments.
Earnings for Beyond Meat, Domino’s and Papa John’s will be released later on Thursday.
In midday trading in Europe, London’s FTSE 100 was down 0.2%, Frankfurt’s DAX was up 0.6% and Paris’ CAC 40 was up 0.5%.
In Asia, the Shanghai Composite Index fell 0.5% to 3,276.19 and Hong Kong’s Hang Seng Index fell 0.5% to 20,323.24.
Seoul’s Kospi rose 1% to 2,442.26 after South Korea’s central bank kept key lending rates unchanged. Sydney’s S&P-ASX 200 is down 0.4% to 7,285.40.
India’s Sensex rose less than 0.1% to 59,801.66. New Zealand and Jakarta rose while Singapore and Bangkok fell.
The Japanese market is closed for a public holiday.
Yields on 10-year government bonds climbed to 3.95%, nearing their highest level since November. His 2-year yield, driven by Fed expectations, remained unchanged at his 4.70%. It is also nearing its highest level since November.
In the energy market, benchmark US crude rose 74 cents to $74.69 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell $2.41 to $73.95 on Wednesday. Brent crude, the benchmark for international oil trading, rose 80 cents to $81.25 a barrel in London. It dropped $2.45 from the previous session to $80.60.
The dollar rose to 135.01 from 134.99 on Wednesday. The euro has bounced back to $1.0615.
The S&P 500 fell 0.2% on Wednesday. This year’s increase has narrowed from its peak of 8.9% to 3.9%.
The Dow fell 0.3% and the Nasdaq Composite rose 0.1%.
McDonald’s reported from Beijing. Ott reported from Silver Spring, Maryland.