Benzinga - Another lackluster session appears to be in the cards on Thursday, as traders may prefer to stay on the sidelines ahead of the U.S. non-farm payrolls data due on Friday. Low volume, typical of pre-holiday trade, could characterize the session, although some wild swings in reaction to the jobless claim data and a Fed speech scheduled for the day may not be ruled out.
Cues From Wednesday’s Trading:
Stocks closed mixed on Wednesday as worries concerning a potential recession weighed down heavily on tech and other growth stocks. The major averages opened uniformly lower and then took divergent routes.
The Dow Industrials held mostly above the unchanged line before closing modestly higher. On the other hand, the Nasdaq Composite Index and the S&P 500 Index languished below the unchanged line throughout the session before closing lower.
Among sectors, consumer discretionary, technology and industrial stocks saw some strength, while energy, utility and healthcare stocks gained ground.
| Nasdaq Composite | -1.07% | 11,996.86 | |
| S&P 500 Index | -0.25% | 4,090.38 | |
| Dow Industrials | +0.24% | 33,482.72 |
The economy and the market had a fairly good first quarter although the good times may not continue into the second quarter, according to Brad McMillan, chief investment officer at Commonwealth Financial Network.
“April and the second quarter will likely be more challenging,” the economist said. “But even if they are, the prospects for the rest of the year continue to look positive,” he added.
The current economic slowdown and adjustment in interest rates, the economist said, should put the economy and markets in a better place.
Futures Today
| Nasdaq 100 Futures | -0.29% | |
| S&P 500 Futures | -0.04% | |
| Dow Futures | +0.03% | |
| R2K Futures | +0.45% |
Upcoming Economic Data:
The Labor Department will release the weekly jobless claims data for the week ended April 1 at 8:30 a.m. EDT. Economists, on average, expect the number of individuals claiming unemployment benefits to increase from 198,000 in the previous week to 200,000.
St. Louis Federal Reserve President James Bullard is scheduled to make a public appearance at 10 a.m. EDT.
The Treasury will auction 4-week and 8-week Treasury bills at 11 a.m. EDT.
See also: Best Futures Trading Software
Stocks In Focus:
- Lumentum Holdings (NASDAQ: LITE) fell over 10% in premarket trading following the company’s first-quarter preannouncement.
- Costco Wholesale Corp. (NASDAQ: COST) fell about 2.50% after its March sales disappointed investors
- Constellation Brands, Inc. (NYSE: STZ), Levi Strauss & Co. (NYSE: LEVI) and WD-40 Company (NASDAQ: WDFC) are among the notable companies reporting results on Thursday.
- FedEx Corp. (NYSE: FDX): Raymond James upgrades from Market Perform to Outperform with $285 price target
- Lumentum: Rosenblatt downgrades from Buy to Neutral and lowers price target from $77 to $48
- Skyworks Solutions, Inc. (NASDAQ: SWKS): Stifel initiates with a Buy rating and $150 price target
- Qorvo, Inc. (NASDAQ: QRVO): Stifel initiates with a Neutral rating and $110 price target
Crude oil futures were lower for a second straight session, with a barrel of WTI-grade crude oil trading at $80.41 a barrel, down 0.25%, in early European trading.
The yield on the benchmark 10-year U.S. Treasury note was at a sub-3.3% level.
Most Asian markets declined on Thursday, led by the Japanese and South Korean markets. The Nikkei 225 Index and the Kospi ended down over 1% each.
European stocks were seen advancing in late-morning trading on Thursday as they rebound from Wednesday’s losses.
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