Stock futures point to a positive start to the month-end session as the momentum that supported the market for most of the year. Traders can get encouragement from this Positive results of Federal Reserve’s bank stress test And some strong earnings reports. With two sessions remaining at the end of the half year, the average looks set to end the period in a bullish fashion.
Signals from Wednesday’s trading:
On Wednesday, the major averages ended a volatile session on a mixed note as traders weighed in on the Fed chair’s comments. Jerome Powell’s Comments about further hardening.
The indices opened with losses but recovered during the morning, but declined in the afternoon due to increased selling. While the Nasdaq Composite ended in the green, the Dow Industrials and the S&P 500 retreated.
A notable development was strength in the small-cap sector, as evidenced by the Russell 2000 Index’s slightly higher close.
Among S&P sectors, utility stocks sold heavily, while energy and communications services stocks advanced.
Performance of US indices on Wednesday
|S&P 500 Index||+0.06%||4380.98|
One analyst said that as the first half of the year comes to an end, inflation, monetary policy and banking issues will be on investors’ radar as they assess their impact on lending and economic growth.
Chris Fasciano, portfolio manager at Commonwealth Financial Network, said there needs to be some caution in the way forward for equity markets. He also sees the geopolitical situation as an adversary.
“Given the variation in potential outcomes, a balanced portfolio across the risk spectrum remains the best way forward for most investors,” Fasciano said.
“It is important to keep the focus on the underlying data – not the headlines – and react accordingly to take advantage of potential opportunities arising from any increased volatility.”
futures display on thursday
Upcoming Economic Data:
Powell spoke early Thursday at the Banco de España’s fourth conference on financial stability in Madrid, Spain, in which he discussed the economic situation and emerging tensions in the US banking system.
The chairman emphasized that inflation remains well above the Fed’s long-term target of 2%. He delves deeper into the banking crisis that rocked regional banks earlier this year and cautions against being complacent about the resilience of the financial system.
The Bureau of Economic Analysis is scheduled to release the third estimate of first quarter GDP data at 8:30 a.m. EDT. On average, economists expect quarter-on-quarter GDP growth to rise from 1.3% to 1.6%.
The Labor Department will release the customary weekly jobless claims report at 8:30 a.m. EDT. According to consensus estimates, the number of individuals claiming unemployment benefits for the week ending June 24 will be 266,000, compared to 264,000 for the week ending June 17.
The National Association of Realtors is all set to announce its Pending Home Sales Index for May at 10 a.m. EDT. Pending home sales may have increased 0.2% month-over-month in May after an unchanged reading in April.
The Treasury will auction the four-week and eight-week notes at 11:30 a.m. EDT.
Atlantic Fed President Raphael Bostic, A member of the Federal Open Market Committee will speak at 3 PM EDT.
Stocks in focus:
- Virgin Galactic Holdings, Inc. SPCE an increase of over 4% in premarket trading Amidst the ongoing momentum due to the impending first commercial flight to the edge of space.
- Blackberry Limited BB And Micron Technology, Inc. Mu climbed 15% and 4%, respectively, in response to their quarterly results.
- Acuity Brands, Inc. Ay, McCormick & Company, Inc. mkc, Paychex, Inc. PAYX and Rite Aid Corp. Red Prominent names due to his report Quarterly results before market open.
- Those reporting after closing include Nike, Inc. NKE And progress software PRGS,
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Commodities, Bonds, Other Global Equity Markets:
Crude oil futures rose 0.17% to $69.68 in early European trade on Thursday. The commodity gained 2.75% in the previous session.
The yield on the benchmark 10-year Treasury note declined 0.037 percentage points to 3.794%.
Major Asian bourses opened with a weak trend in Thursday’s session, while European bourses advanced strongly in late morning trade. Indian, Malaysian and Singaporean markets remained closed on account of public holidays.