Quotes of futures for US stock indices are changing without a single dynamics on Thursday, traders are evaluating statistical data on the US labor market and a portion of corporate reports.
The number of Americans who applied for unemployment benefits for the first time fell by 12,000 last week to 214,000, according to a report from the US Department of Labor.
The previous week, the number of applications was 226 thousand, and not 228 thousand, as previously reported.
Analysts, on average, had expected the figure to rise to 230,000 from the previously announced level, according to Trading Economics. Bloomberg’s consensus forecast was for growth to 233,000.
Shares of Union Pacific Corp. cheaper by 3.5%. The American railroad operator posted adjusted earnings and revenue above analysts’ forecasts in the third quarter, but disappointed the market with a worsening outlook and a reduction in the buyback program this year.
Papers of ManpowerGroup Inc. lose 8.7%. The recruiting company posted a net profit increase in the third quarter, but its revenue fell more than market forecasts.
Share price of Philip Morris International rises 0.6%. The tobacco concern in the third quarter of 2022 reduced its net profit by 14%, but received revenue above the market forecast.
Shares of Blackstone Group Inc. add 1.4%. The world’s largest alternative investment manager posted a sharp drop in net income and revenue in the third quarter of 2022, but saw a surge in assets under management.
Paper American Airlines Group cheaper by 1.1%. The airline in the third quarter increased revenue by 13% compared to the same period pre-pandemic 2019, despite a reduction in transportation capacity by 9.6%.
AT&T Inc stock quotes. grow by 3.2%. The American telecommunications company increased its net profit in the third quarter of 2022 by 26%, while revenue decreased by 4%.
The value of the December E-mini futures on the Dow Jones index by 15:39 qoq increased by 0.3% and amounted to 30,552 points. Quotation of the December E-mini futures on the S&P 500 index increased by this time by 0.1%, to 3711 points. Futures on the Nasdaq 100 index for December lost 0.07% and amounted to 11,145 points.
Futures for US stock indices are actively rising on Monday, signaling that the US stock market may start the week on a positive note, winning back the fall on Friday.
Investors are analyzing the latest financial statements of the largest Wall Street banks.
Bank of America Corp. in the third quarter increased revenue by 7.5%, which was better than analysts’ expectations. BofA shares are up 2.8%.
Bank of New York Mellon (SPB: BK), the world’s largest custodian bank, sharply cut its net income in July-September, with an adjusted per-share figure that beat analysts’ expectations. Paper BNY Mellon rise in price by 4.7%.
On Friday, JPMorgan Chase & Co also released its third-quarter financials. (SPB: JPM), Citigroup Inc. (SPB: C), Wells Fargo & Co. (SPB: WFC) and Morgan Stanley (SPB: MS).
JPMorgan and Citigroup delivered higher-than-market revenue and adjusted earnings, while Wells Fargo increased revenue by 4% and Morgan Stanley cut it by 12%.
The market capitalization of oil producer Continental Resources (SPB:CLR) jumped 8.2% in pre-trading. Company founder Harold Hamm has announced that he will buy all outstanding shares of Continental Resources through his Omega Acquisition Inc.
Shares of Archaea Energy Inc., one of the largest producers of renewable natural gas in the United States, jumped 1.5 times after the announcement that it was being bought by the British BP Plc (SPB:BP).
The cost of the manufacturer of diagnostic medical equipment PerkinElmer Inc. (SPB: PKI) does not change during pre-bidding. The company said it expects higher-than-expected third-quarter adjusted earnings, with revenue close to the upper forecast range.
Meanwhile, the Empire Manufacturing Index, calculated by the New York Fed, fell to minus 9.1 in October from minus 1.5 a month earlier, indicating a further decline in business activity in New York State. The indicator turned out to be negative for the third month in a row. Analysts had expected it at minus 4 points, writes Trading Economics.
Quotations of December futures for the Standard & Poor’s 500 index rose by 1.37% to 3646 points by 15:50 square meters, for the Dow Jones index – by 1.05%, to 30021 points. The price of contracts for December on the Nasdaq 100 index by this time increased by 1.73% – up to 10929.5 points.
Quotes of futures for US stock indices began to decline sharply on Thursday after data from the US Department of Labor indicated only a slight slowdown in inflation in the United States.
Consumer prices (CPI index) in the US in the past month rose by 8.2% in annual terms, according to data from the country’s Department of Labor.
Thus, inflation in September slowed to a seven-month low compared to 8.3% in August, but was higher than the 8.1% expected by analysts polled by Bloomberg.
Meanwhile, the number of Americans who applied for unemployment benefits for the first time increased by 9 thousand last week and amounted to 228 thousand people, updating the maximum in a month and a half. Analysts on average had expected the figure to rise to 225K, according to Trading Economics.
In addition, investors are evaluating the quarterly reports of large companies, which mostly turned out to be better than Wall Street’s expectations.
Shares of Walgreens Boots Alliance are up 1.1%. The pharmacy chain recorded a decrease in revenue in the fourth financial quarter, but the figure exceeded analysts’ expectations.
Delta Air Lines is up 1.8%. One of the largest airlines in the United States in the third quarter received revenue that was better than the same period before the pandemic in 2019 and the market forecast.
Domino’s Pizza Inc stock quotes jumped 6.5%. The American chain of pizza restaurants in the third quarter of fiscal 2022 decreased net profit, but the revenue figure exceeded consensus forecasts.
The market value of BlackRock falls by 2.7%. The world’s largest company in terms of assets under management reduced its net profit in the third quarter by 16.4%, although the adjusted figure and revenue were better than experts’ expectations.
Capitalization of Applied Materials Inc. declined 4.3% after one of the world’s largest chip manufacturing equipment manufacturers downgraded its fiscal fourth quarter revenue guidance due to US trade restrictions blocking shipments of high-tech semiconductor components and manufacturing equipment to China.
The value of the December futures E-mini on the Dow Jones index by 15:35 CSK fell by 1.36% and amounted to 28864 points. The quotation of the December E-mini futures on the S&P 500 fell by this time by 1.82%, to 3523.25 points. Futures on the Nasdaq 100 for December fell 2.81% to 10,535.75 points.
Prior to the release of inflation data, all three futures were up more than 1%.
Quotes of futures for US stock indices do not show a single dynamics at the auction on Tuesday.
The US stock market has declined in the previous four sessions, and risk appetite remains low due to investors’ fears that the Federal Reserve’s (Fed’s) rapid tightening of monetary policy will dampen economic activity and corporate profits, Market Watch notes.
CEO of JPMorgan Chase & Co. Jamie Dimon said the day before that the S&P 500 index could fall by another 20% amid the ongoing tightening of monetary policy by the Fed. This year, the stock indicator has already lost 24%.
Dimon warned that the US economy could fall into recession in the next six to nine months.
Yields on two-year US Treasuries, which are sensitive to a hike in the base rate, rose above 4.3% on Tuesday, close to the maximum since 2007. The interest rate on ten-year US Treasury bonds rose during trading above the 4% mark.
“The 10-year US Treasuries are back above 4% and we expect the pressure on the US stock market to continue,” said Peter Garnry, head of equity strategy at Saxo Bank A/S. profits and cause disappointment in the prospects of the companies.”
S&P 500 companies’ third-quarter combined earnings are up 4.5% year-over-year, according to Refinitiv’s forecast. Profits of energy companies are expected to have grown by 6.3%, banks – have decreased by 1.6%.
Citigroup Inc., JPMorgan, Morgan Stanley and Wells Fargo & Co. will release quarterly results this week. Bank shares lost 0.2%, 0.4%, 0.3% and 0.5% respectively in early trading on Tuesday.
American Airlines Group Inc. rose by 4.3%. The airline improved its forecasts for revenue and revenue per marginal passenger turnover in the third quarter.
Shares of Delta Air Lines Inc. add 2.8% to the price. The airline said Tuesday it is investing $60 million in flying taxi developer Joby Aviation Inc. and intends to use air taxis to deliver passengers to airports in the future, bypassing traffic jams in New York and Los Angeles.
Joby shares rose 18%.
The value of the December E-mini futures for the S&P 500 fell by 0.1% to 3621.75 points by 15:50 Moscow time on Tuesday. Quotation of the December E-mini futures on the Dow Jones index increased by this time by 0.02%, to 29266 points. Futures on the Nasdaq 100 for December fell 0.14% to 10969.5 points.
Futures for US stock indices fluctuate between growth and decline in trading on Thursday after the publication of data from the Ministry of Labor, which showed the maximum increase since June this year in the number of applications for unemployment benefits in the US.
The number of Americans who applied for unemployment benefits for the first time increased by 29 thousand last week and amounted to 219 thousand people.
According to revised data, a week earlier the number of applications was 190 thousand, and not 193 thousand, as previously reported. Analysts polled by Bloomberg expected the figure to rise to 204,000, on average.
Traders take a cautious stance ahead of the publication of September data on the number of jobs and unemployment in the US. The Department of Labor will release them on Friday at 3:30 pm ET.
The consensus forecast of experts polled by Market Watch suggests that the number of jobs in the US last month increased by 275 thousand (315 thousand in August), while maintaining unemployment at 3.7%.
The situation in the US labor market is a key factor influencing the policy of the Federal Reserve System (Fed), and the upcoming publication of unemployment data makes traders take a wait-and-see attitude, experts say.
Another report from the Department of Labor, published earlier this week, showed a sharp decline in the number of open vacancies in the States in August. The indicator fell by 10% – the fastest pace since the start of the pandemic in 2020, to 10.1 million vacancies.
These data were perceived by investors as a signal of “cooling” of the US labor market, which may hold back further tightening of the Fed’s policy.
However, industry organization ADP said on Wednesday that the number of jobs in the US private sector in September rose by 208 thousand compared to August – more than expected. Analysts polled by Dow Jones had forecast a 200,000 increase after rising 185,000 in August.
Shares of Peloton Interactive Inc. adding 0.2% in price during preliminary trading on Thursday. The US fitness equipment manufacturer plans a fourth round of layoffs that will affect 500 jobs.
Conagra Brands rose 0.4%. The prepared food manufacturer ended the first quarter of fiscal 2023 with a loss, but the company’s adjusted figure and revenue exceeded experts’ expectations.
Share price of International Business Machines fell 0.4%. The company has announced plans to invest $20 billion in business development in the Hudson River Valley over the next decade.
The value of the December E-mini futures on the S&P 500 fell by 0.01% to 3793.75 points by 15:55 Moscow time on Thursday. The quotation of the December E-mini futures on the Dow Jones index decreased by this time by 0.06%, to 30293 points. Futures on the Nasdaq 100 for December rose 0.19% to 11646.25 points.
Quotes of futures for US stock indices are declining due to the general decline in interest in risk in world markets.
Statistical data, published on Thursday, confirmed the contraction of US GDP in the second quarter. The country’s economy in April-June 2022 decreased by 0.6% on an annualized basis, according to the final data of the US Department of Commerce, which coincided with the previous estimate and forecasts of analysts surveyed by Trading Economics.
The number of new jobless claims in the US, meanwhile, reached its lowest level since May. The indicator decreased last week by 16,000 to 193,000 from 209,000 a week earlier, the country’s Ministry of Labor reported. Analysts, on average, expected an increase in the number of applications to 215K compared to the previously announced level of the previous week (213K), according to Trading Economics.
The price of shares of CarMax Inc., engaged in the sale of used cars, collapsed during preliminary trading by 15% due to weak reporting of the company. Last quarter, CarMax’s net income more than halved to $0.79 per share from $1.72 per share a year earlier, worse than the average forecast of experts surveyed by FactSet at $1.39 per share. Quarterly revenue increased 2% to $8.14 billion, also falling short of market expectations ($8.54 billion).
Alibaba Group Holding shares lost 3.1% after JPMorgan Chase analyst Alex Yao lowered the company’s target price to $135 from $145. The expert retained an overweight recommendation for Alibaba shares, but noted that he is cautious about the company’s outlook given the weakening consumer spending in China.
The price of Kraft Heinz Co. stable in pre-trading despite UBS’s upgraded recommendation for US food maker shares to Neutral/Sell.
The share price of Occidental Petroleum rose 0.1%. On the eve it became known that the investment company of the American billionaire Warren Buffett Berkshire Hathaway bought another 6 million shares of Occidental, increasing its share to 20.9%.
Berkshire fell 0.95%.
The share price of the American pharmacy chain Rite Aid Corp. fell by 12%. The company’s net loss in the second financial quarter ended August 27 more than tripled year-on-year to $331.3 million, or $6.07 per share, from $100.3 million, or $1.86 per share. Rite Aid wrote off $252.2 million last quarter due to a business reorganization.
The value of the December E-mini futures contract for the S&P 500 fell by 1.2% by 15:55 CST on Thursday and amounted to 3686.5 points. The quote of the December E-mini futures on the Dow Jones index decreased by this time by 0.99%, to 29456 points. Futures on the Nasdaq 100 for December fell 1.5% to 11381.25 points.
