Stock futures trading mixed before economic data and bank earnings

[ad_1]

David Harden, Chief Information Officer at Summit Global Investments, shares his market picks and investment advice.

US stock futures tend towards a mixed trading session on Thursday.

Major futures indices point to a 0.2% drop in the Dow, but a 0.4% rise in the Nasdaq.

Get your FOX business on the go by clicking here

Financial companies declaring their earnings continue to work with results due from Morgan Stanley, US Bancorp and Bank of New York Mellon.

Also see results from the Dow member and managed care giant UnitedHealth.

A full panel of economic data is coming up.

The Labor Department pulled out a tally of new claims for unemployment benefits last week. The forecast is for 360,000. This is down from 373,000 in the previous week and would mark a new low in the epidemic.

Meanwhile, keep an eye out for a key regional manufacturing report when the New York Federal Reserve releases its Empire State manufacturing survey for July. Refinitiv’s estimate is 18.0, up from a weaker-than-expected reading of 17.4 in June.

The Philadelphia Federal Reserve came out with its own index of manufacturing activity for eastern Pennsylvania, southern New Jersey and Delaware.

Other reports due will measure import and export prices and industrial production.

In Europe, London’s FTSE was little changed, Germany’s DAX rose 0.8% and France’s CAC rose 0.5%.

China’s economic growth slows to 7.9%

China reported that its economy expanded at an annual rate of 7.9% in the most recent quarter, down from 18.3% in the January-March period in a compromise for a relatively early recovery from the epidemic.

Japan’s Nikkei 225 Index is down 1.2%, Hong Kong’s Hang Seng Index is up 0.8%, while China’s Shanghai Composite is up about 1.0%.

Last Change Index Safety Index % I: DJI DOW JONES Averages 34933.23 +44.44 + 0.13% SP500 S&P 500 4374.3 +5.09 + 0.12% I: COMP NASDAQ COMPOSITE INDEX 14644.952258 -32.70 -0.22%

On Wednesday, the S&P 500 gained 0.1% to 4374.30, the Dow Jones Industrial Average rose 0.1% to 34993.23 and the Nasdaq Composite declined 0.2% to 14644.95.

Investors had mixed reactions to a fresh batch of earnings news from banks, airlines and other companies, as well as the latest report showing another spike in inflation. They are also monitoring the latest comments on inflation from the Federal Reserve chair, who reiterated the Fed’s view that the rise in costs across the economy is temporary.

Wells Fargo beats earnings estimates on boosting reserve liberalization

Banks mostly fell even after several of them gave solid earnings reports. Citigroup gave up its early gains and fell 0.3%, despite reporting a more than fivefold increase in profits, buoyed by an improving economy that resulted in fewer bad loans on the bank’s balance sheet. Wells Fargo rose 4% for the biggest gain in the S&P 500 after reporting the most profitable quarter in two years.

Mixed results from Bank of America disappointed investors. It fell 2.5 percent after reporting strong earnings but weak revenue.

Airlines are showing more signs of recovery as people begin to resume travel for work and leisure. American Airlines stock rose 3% after giving investors an encouraging update on its financial picture for the second quarter.

In testimony before a House committee, Federal Reserve Chairman Jerome Powell suggested that inflation is likely to remain high, but ultimately moderate, reinforcing the central bank’s position that higher inflation is a temporary effect of the economy’s recovery.

Click here to read more about FOX BUSINESS

In energy trading, benchmark US crude fell 79 cents to $72.34 a barrel in electronic trading on the New York Mercantile Exchange. It fell $2.12 to $73.13 a barrel on Wednesday. Brent crude, the international benchmark, lost 56 cents to $74.20 a barrel.

The Associated Press contributed to this report.

[ad_2]