Renaissance Macro Research Economics head Neil Dutta explains the data behind his optimistic expectations for the U.S. economy.
U.S. stock futures were modestly lower Thursday morning as traders await comments from Federal Reserve Chairman Jerome Powell on the economy.
Dow Jones Industrial Average futures were trading lower by 60 points, or 0.19%, while S&P 500 futures and Nasdaq Composite futures were both weaker by 0.47%. The early selling comes a day after the Nasdaq Composite plunged 2.7% as the 10-year yield neared 1.5%, the level of S&P 500’s dividend yield.
The recent rise in yields will be top of mind when Powell speaks at The Wall Street Journal Jobs Summit at 12:05 p.m. ET. Investors will be paying close attention for hints to possible Fed policy regarding the recent run-up in yields and concerns about inflation.
Looking at stocks, mega-cap technology companies, including Apple Inc., Microsoft Corp. and Amazon Inc., which as growth stocks are particularly sensitive to higher bond yields, remained in focus.
Snap Inc. CEO Evan Spiegel said his company’s forecast to deliver 50% annual revenue growth for several years takes is without adding users or engagement growth. The company expects to grow average revenue per user through developing augmented reality products and adding media content.
In mergers and acquisitions, identity and access management company Okta Inc. agreed to acquire rival Auth0 in a $6.5 billion all-stock deal. Auth0 last raised money in July – at a $1.92 billion valuation.
In earnings, chipmaker Marvell Technology Group Ltd. posted quarterly revenue that exceeded Wall Street estimates, but warned supplies could be tight into 2022.
BJ Wholesale Club Holdings Inc. reported quarterly profit surged 129% from a year ago, but declined to provide a financial outlook due to uncertainty from the pandemic and government stimulus checks.
In commodities, West Texas Intermediate crude oil ticked up 1 cent to $61.29 per barrel and gold slipped $1.10 to $1,714.70 an ounce.
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Overseas markets traded lower across the board.
Britain’s FTSE 100 paced the decline in Europe, down 1.05%, while Germany’s DAX and France’s CAC were weaker by 0.49% and 0.26%, respectively.
In Asia, Hong Kong’s Hang Seng index lost 2.15%, Japan’s Nikkei 225 fell 2.13% and China’s Shanghai Composite fell 2.05%.
