After moving sharply higher in the previous session, stocks may show a lack of direction in early trading on Thursday. The major index futures are currently pointing to a roughly flat open for the markets, with the S&P 500 futures up by less than a tenth of a percent.
Traders may a moment to digest the rally seen on Wednesday, which saw the major averages post their largest daily percentage gains in over two months amid a positive reaction to consumer price inflation data.
Nonetheless, some positive sentiment may be generated in reaction to a Labor Department report showing a bigger than expected rebound by initial jobless claims in the week ended January 11th.
The Labor Department said initial jobless claims climbed to 217,000, an increase of 14,000 from the previous week’s revised level of 203,000. Economists had expected jobless claims to rise to 210,000.
The bigger than expected increase came after jobless claims fell to their lowest level since hitting 200,000 in the week ended February 17, 2024.
The data may add to optimism about the outlook for interest rates following yesterday’s report showing an unexpected slowdown by the annual rate of core consumer price growth.
The Commerce Department also released a report showing retail sales in the U.S. increased by less than expected in the month of December.
The report said retail sales rose by 0.4 percent in December after advancing by an upwardly revised 0.8 percent in November. Economists had expected retail sales to climb by 0.6 percent.
Meanwhile, a slump by shares of UnitedHealth (UNH) may weigh on the Dow, with the health insurance giant tumbling by 4.3 percent in pre-market trading after reporting weaker than expected fourth quarter revenues.
Stocks moved sharply higher early in the session on Wednesday and continued to turn in a strong performance throughout the trading day. The major averages all surged after ending Tuesday’s trading narrowly mixed.
The tech-heavy Nasdaq posted a standout gain, soaring 466.84 points or 2.5 percent to 19,511.23 after ending the previous session at its lowest closing level in almost two months.
The Dow also jumped 703.27 points or 1.7 percent to 43,221.55, while the S&P 500 shot up 107.00 points or 1.8 percent to 5,949.91.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Thursday. Japan’s Nikkei 225 Index rose by 0.3 percent, while Hong Kong’s Hang Seng Index jumped by 1.2 percent.
The major European markets have also moved to the upside on the day. While the French CAC 40 Index has surged by 2.0 percent, the U.K.’s FTSE 100 Index is up by 0.6 percent and the German DAX Index is up by 0.4 percent.
In commodities trading, crude oil futures are falling $0.44 to $79.60 a barrel after surging $2.54 to $80.04 a barrel on Wednesday. Meanwhile, after jumping $35.50 to $2,717.80 an ounce in the previous session, gold futures are climbing $21.40 to $2,739.20 an ounce.
On the currency front, the U.S. dollar is trading at 156.03 yen versus the 156.47 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.0278 compared to yesterday’s $1.0289.
Business News
U.S. Stocks May Lack Direction Following Yesterday’s Rally
2025-01-16 13:57:07
