US stock index futures were at a standstill ahead of US weekly initial jobless claims. Futures contracts tied to the Dow Jones Industrial Average gained 73 points. S&P 500 futures, as well as Nasdaq 100 futures, were marginally higher.
US Economic Concerns
Dow Jones index closed higher on Wednesday’s session, up 286 points or 0.83%. The major averages have now erased Monday’s major selloffs. Dow Jones index slipped by more than 700 points at the beginning of the week after the surging Covid-19 cases hit global sentiment.
The Delta variant fears were offset by strong corporate earnings in the United States. Investors were worried that the surging coronavirus cases would hamper global economic recovery. The Federal Reserve’s dovish monetary policy decision also played a role in calming market fears.
Fed Chairman, Jerome Powell reiterated that the Fed would maintain its monetary stimulus. According to Powell, the country’s inflation is likely to be transitory. The Fed would only start discussing the tapering of its stimulus if the economy signaled stability.
US Treasury yields were a little unchanged on Thursday ahead of weekly initial claims. The yield on the benchmark 10-year Treasury note was higher at 1.287%. The yield on the 30-year Treasury bond was at a standstill at 1.933%.
Oil prices extended their gains to Thursday. WTI Crude oil was up 0.77% to trade at $70.84 per barrel. Brent Crude oil advanced 0.79% to trade at $72.81 per barrel.
Investors are waiting for the US weekly initial claims by the US Department of Labor later in the day. Economists polled by Dow Jones expect the jobless claims to come in lower at 350,000 from the previous 360,000. The US existing home sales data for June will also be released later today.
Dow Jones Market Movers
JP Morgan was the best performer in the Dow Jones premarket trade. The investment banking company advanced 1.16%. The company’s CEO, Jamie Dimon was awarded 1.5 million stock appreciation rights to persuade him to lead the bank for a few more years.
Microsoft’s stock price advanced in premarket trading. The company’s Intelligent Cloud contributed $15.1 billion of the $41.7 billion overall revenue made by the tech company in the past quarter.
Walmart Inc was also up in the premarket trade. The retail company closed lower in the previous trading session.
On the flipside, Procter & Gamble led the laggards in the index. The consumer goods corporation fell 1.01%. The company announced its first paper bottle as it aims to reduce the use of virgin plastics by 50% by 2030.