On Thursday, US stock index futures were slightly lower as investors awaited upon data on labor market to help determine the timing of the Federal Reserve’s interest rate increase.
The market will review quarterly results from Kroger Co., supermarket chain, to determine consumer spending. Kroger is expected to post earnings of 69 cents per share for Q2.
According to Fox Business, the Dow Jones Industrial Average dropped 0.2% or 30 points to 17,028 and those for the S&P 500 index dropped 0.2% to 1,991. The Nasdaq 100 index futures dropped 0.1% to 4,087.
Economists are expecting the initial unemployment benefits claims to drop from 302,000 to 301,000. August’s payroll report was weaker than expected, and while this is a bearish sign for growth in the economy, it was taken as a sign of the Federal Reserve holding off on increasing the interest rates.
Reuters reported that the reaction has been on the downside even though Wall Street had gained on Wednesday. The S&P has fallen in five of the last seven trading sessions. It closed below its 14-day morning average on Wednesday, the second in a row, showing a weak momentum.
The benchmark index is 0.6% away from last week’s record closing high.
Even though the markets have seen little effect from the geopolitical tension and brutal violence in Iraq, any slight impact to the oil supply of the region might lead to a major impact on the commodity markets.
US crude futures dropped 1% to $90.79, down 5.4% September.
Lululemon stocks rose 6.8% after the maker of yoga gear reported Q2 results that beat the expectations of Wall Street.
JDSU shares rose 12% in premarket trading after the maker of networking equipment said late Wednesday that it would split into two public companies.
Restoration Hardware Holding, home goods retailer, posted Q2 earnings that did not meet the expectations of Wall Street. The shares dropped 4.3%.
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