U.S. stocks are priming for a negative start on Thursday after the recovery attempt in Wednesday’s session culminated in a mixed close. Traders may wait and watch Friday's job data before plotting their next moves.
Cues From Wednesday’s Trading:
On Wednesday, the major indices went about in a listless manner as traders digested Fed Chair Jerome Powell’s remarks before the Financial Services Committee and the stronger-than-expected ADP private payrolls data. The tech-heavy Nasdaq Composite and the S&P 500 indices flitted in and out of the unchanged line before a late-hour buying spree helped them settle higher for the day.
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The Dow Industrials languished mostly below the unchanged line before closing lower.
The sentiment was mixed across sectors, with technology, utility, real estate and material stocks moving notably to the downside, while energy stocks came under intense selling pressure. Healthcare and consumer discretionary stocks also showed some weakness.
| Index | Performance (+/-) | Value | |
|---|---|---|---|
| Nasdaq Composite | +0.40% | 11,576.01 | |
| S&P 500 Index | +0.14% | 3,992.01 | |
| Dow Industrials | -0.18% | 32,798.40 |
Analyst Color:
Ahead of Friday’s February non-farm payrolls report, Bill Adams, chief economist at Comerica Bank, said the labor market is becoming less tight as fewer workers quit their jobs and hiring is increasingly targeted at labor force entrants.
“Unlike the unemployment rate, which showed the job market tightening through the beginning of this year, the job openings, hires, and quits data suggest that the labor market has cooled although is still much tighter than before the pandemic,” he added.
Comerica forecasts a non-farm payroll gain of 160,000 and the unemployment rate unchanged at a half-century low of 3.4%. Over the rest of 2023 and into 2024, the firm expects job growth to slow and then turn negative, and unemployment to rise.
Futures Today
| Index | Performance (+/-) | |
|---|---|---|
| Nasdaq 100 Futures | -0.53% | |
| S&P 500 Futures | -0.21% | |
| Dow Futures | -0.02% | |
| R2K Futures | -0.19% |
In premarket trading on Thursday, the SPDR S&P 500 ETF Trust SPY fell 0.18% to $398.21 and the Invesco QQQ Trust QQQ moved down 0.49% to $$296.35, according to Benzinga Pro data.
Upcoming Economic Data:
Challenger job cuts data, which measures the change in the number of job cuts announced by corporate employers, is due at 7:30 a.m. EST.
The Labor Department will release its customary weekly jobless claims data at 8:30 a.m. EST. Economists expect the number of individuals claiming unemployment benefits to have increased by 195,000 in the week ended March 4, more than 190,000 reported for the previous week.
Fed Vice Chair for Supervision Michael Barr is scheduled to speak at 10 a.m. EST.
The Treasury will auction 4-week and 8-week bills at 11:30 a.m. EST and 30-year bonds at 1 p.m. EST.
Stocks In Focus:
- SVB Financial Group SIVB plunged over 29% in premarket trading after the parent of Silicon Valley Bank announced proposed offerings of common stock and convertible preferred stock.
- MongoDB, Inc. MDB plunged over 11% in reaction to its quarterly results.
- Asana, Inc. ASAN jumped about 20% after it reported quarterly revenue ahead of expectations and its CEO Dustin Moskovitz hinted at plans to buy up to 30 million shares of the company.
- BJ’s Wholesale Club Holdings, Inc. BJ, Fuelcell Energy, Inc. FCEL, JD.com, Inc. JD, Oracle Corp. ORCL, DocuSign, Inc. DOCU, Smith & Wesson Brands, Inc. SWBI and Gap, Inc. GPS are among the companies due to report their quarterly results on Thursday.
Commodities, Bonds, Other Global Equity Markets:
Crude oil futures were trading lower for a third straight day, with a barrel of WTI-grade crude oil fetching $76.56, down 0.13%.
The 10-year Treasury note yield was at 3.985%.
Most Asian markets closed in the red on Thursday, with the Chinese, Hong Kong and South Korean markets retreating sharply. On the other hand, he Japanese, Indonesian and New Zealand markets, notched up strong gains. Among economic data from the region, Japan downwardly adjusted fourth-quarter GDP growth to show anemic growth and China reported inflation data that was much weaker than expected.
European stocks were moderately lower in late-morning trading on Thursday.
Read Next: Critical US Jobs Report Coming On Friday: What Investors Should Expect
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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