Wall St poised to open lower ahead of more economic data, Fed minutes
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
US private payrolls growth slows in June
Paramount jumps on report of Skydance Media deal
Fed meeting minutes due at 2 p.m. ET
Futures down: Dow 0.03%, S&P 500 0.11%, Nasdaq 0.19%
Updated at 8:45 a.m. ET/1245 GMT
By Ankika Biswas and Lisa Pauline Mattackal
July 3 (Reuters) - Wall Street was set to open slightly loweron Wednesday ahead of a holiday-shortened trading session, as investors assessed jobs data while being on the lookout for more economic reports and theFederal Reserve's June policy meeting minutes.
The equity market will close early on Wednesday and stay shut on Thursday on account of U.S. Independence Day, keeping trading volumes thin throughout the week.
The ADP Employment report showedU.S. private payrolls increased a bit less than expected in June, consistent with slowing labor market momentum.
A separate data revealed weekly jobless claims rose to 238,000 in the week ended June 29, versus expectations of 235,000, with continued claims for the week ended June 22 rising to 1.858 million, stronger than forecasts of 1.84 million.
This comes ahead of Friday's closely watched non-farm payrolls report, anda day after data signaled higher U.S. job openings as well as layoffs in May.
"It's quite a strong unemployment claims number, and it's fitting in with an overall trend that's probably an indication of loosening up in the jobs market. It must be quite welcoming for the Fed," said David Morrison, Trade Nation senior market analyst.
Wednesday's data prompted market participants to hold onto their bets of the first rate cut arriving in September and around two cuts by the end of the year, as per LSEG's FedWatch.
The other data points on the watch list include factory orders and services PMIs after markets open, along with the Fed's June meeting minutes at 2 p.m. ET.
Gains in Tesla and megacap stocks helped the Nasdaq .IXIC and the S&P 500 .SPX to close at record highs on Tuesday, a day that also saw Fed Chair Jerome Powell acknowledge the "disinflationary path," while also flagging the need for more data before cutting interest rates.
Tesla TSLA.O rose nearly 1% premarketafter hitting its highest level since January on Tuesday following a smaller-than-expected drop in second-quarter vehicle deliveries.
However, NvidiaNVDA.O slipped 0.7%, in a recent choppy run for the AI chip leader after its staggering gains since 2023, with other megacapsincluding Alphabet GOOGL.O, Microsoft MSFT.O, and Amazon.com AMZN.O also edging lower.
As the S&P 500 has jumped over 15% in the first half of 2024, largely supported by top-tier high momentum technology-related stocks, the benchmark index's equal-weighted counterpart .SPXEW only rose 5%, signaling the lack of a broad-based market strength.
At 8:45 a.m. ET, Dow e-minis 1YMcv1 were down 10 points, or 0.03%, S&P 500 e-minis EScv1 were down 6.25 points, or 0.11%, and Nasdaq 100 e-minis NQcv1 were down 38.75 points, or 0.19%.
Among other premarket movers, Paramount Global PARA.O jumped 12.9% after Shari Redstone's National Amusements reached a preliminary deal to sell its controlling interest in the media giant to David Ellison's Skydance Media.
Lender First Foundation FFWM.N shed 27% after the company, which holds a huge portfolio of multifamily real estate loans, disclosed a $228 million unexpected capital raise.
Reporting by Ankika Biswas and Lisa Mattackal in Bengaluru; Editing by Maju Samuel
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
