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The King’s College professor Brian Brenberg gives his take on the markets as the Dow hits 30,000.
Stock futures trimmed losses but remained mixed after a basket of economic data rolled in Wednesday morning.
STOCK FUTURES MIXED ON ECO DATA
Dow futures were lower by 48 points or 0.1% after the benchmark topped the 30,000 mark for the first time Tuesday. S&P 500 futures were little changed and Nasdaq futures were higher by 0.2%.
|I:DJI||DOW JONES AVERAGES||30046.24||+454.97||+1.54%|
GDP, DURABLES SOLID AS JOBLESS CLAIMS TICK UP
Durable Goods rose 1.3%, better than the 0.9% expected, excluding transportation, a 1.5% rise was recorded in October. The second read for 3Q GDP was a record 33.1%, basically in line with the prior read of 33.2%.
And jobless claims slightly weaker rising by 778,000, more than the 730,000 economists were expecting. Continuing claims remain elevated at 6.07 million as the pandemic continues to weigh on industries including restaurants and hotels.
Early trading suggests oil majors Exxon Mobil Corp. and Chevron Corp. were set for a pullback despite West Texas Intermediate crude oil trading up 43 cents at $45.34 per barrel.
Retailers that saw strong gains in recent sessions due to optimism surrounding a COVID-19 vaccine were set to open sharply lower with Gap Inc. and Macy’s Inc. among the biggest decliners in premarket trading.
Nordstrom Inc. bucked the downtrend in the retail sector after the company swung to an unexpected quarterly profit as digital sales in the three months through September totaled $1.6 billion, or 54% of revenue. The department store anticipates “pent-up customer demand” as a COVID-19 vaccine is distributed to the masses.
Elsewhere in earnings, Deere & Co. reported stronger-than-expected quarterly earnings and forecast a higher fiscal year 2021 profit amid higher crop prices and improving fundamentals in the agricultural sector.
Meanwhile, Tesla Inc. shares were on track for a higher open after climbing above $500 for the first time since September, when shares split 5-for-1. The company’s market cap hit $526 billion for the first time making it larger than rivals including Toyota, Ford and General Motors.
In other economic reports, October new home sales, personal income and spending, and November consumer sentiment will all cross the wires at 10 a.m. ET.
Minutes from the Federal Reserve’s meeting earlier this month are due out at 2 p.m. ET.
European markets were lower across the board with Britain’s FTSE 100 pacing the decline, off 0.55%. Elsewhere, Germany’s DAX 30 and France’s CAC 40 were lower by 0.37% and 0.22%, respectively.
In Asia, Japan’s Nikkei 225 added 0.5%, Hong Kong’s Hang Seng index edged up 0.31% and China’s Shanghai Composite index lost 1.19%.