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Tesla shares in focus.
Chandan Khanna/Agence France-Presse/Getty Images
Stock-index futures remained slightly lower Thursday as investors weighed a larger-than-expected drop in first-time jobless claims and a continued stream of corporate earnings reports as talks over a fiscal stimulus package drag on.
What are major benchmarks doing?
Futures on the Dow Jones Industrial Average YM00, -0.13% fell 48 points, or 0.2%, to 28,086, while S&P 500 futures ES00, -0.18% were off 7.25 points, or 0.2%, at 3,425.25. Nasdaq-100 futures NQ00, -0.18% declined 20.25 points, or 0.2%, to 11,671.
The Dow DJIA, -0.34% on Wednesday ended a topsy-turvy session with a loss of 97.97 points, or 0.3%, at 28,210.82, while the S&P 500 SPX, -0.22% dropped 7.56 points, or 0.2%, to close at 3,435.56. The Nasdaq Composite COMP, -0.27% finished at 11,484.94, down 31.80 points, or 0.3%.
What’s driving the market?
Long-running fiscal stimulus talks have captivated investors over the past few weeks, sparking debate over whether the economic recovery would lose momentum in the fourth quarter without another round of aid from Washington.
Negotiations between House Democrats and the Trump administration on a deal have been seen making progress, with President Donald Trump calling for a large deal, but Senate Republicans have resisted calls for a $1.9 trillion-plus package. On Wednesday, both House Democrats and the White House were playing down prospects for a deal before Election Day on Nov. 3, while planning to continue talks.
Read: Both sides in Washington play down Election Day as fiscal stimulus deal deadline
“The back and forth between the Democrats and the Republicans seems to be never-ending and traders are getting sick of the negotiations dragging on,” said David Madden, market analyst at CMC Markets UK, in a note. “The mood is a little downbeat because all the while that U.S. politicians are squabbling, the health crisis is getting worse. ”
Traders, however, aren’t “cutting and running” on expectations a deal will come eventually, he said.
In the U.S., the seven-day moving average of new cases was 59,527 as of Tuesday, while the 14-day average was 55,282, The Wall Street Journal reported, citing an analysis of data compiled by Johns Hopkins. When the seven-day average tops the 14-day, it indicates cases are on the rise.
See: Global cases of COVID-19 41.28 million, 1.13 million deaths and U.S. death toll tops 222,000
Analysts said renewed jitters over the presidential election could also make investors more reluctant to embrace risky assets in the near term. The U.S. on Wednesday accused Iran of interfering in the election, blaming the country for threatening emails to registered Democratic voters in battle ground states, while also saying that Russia had obtained voter registration data.
Trump and Democratic challenger Joe Biden face off for a second and final televised debate Thursday night. Biden continues to lead Trump in nationwide polls but has seen his advantage shrink somewhat in recent days.
Read: Thursday’s debate looks like the last-chance saloon for Trump, analysts say
Earnings reporting season also remains in full swing, as investors digested results from a number of closely followed companies, including electric-vehicle maker Tesla Inc. TSLA, +0.16%.
First-time applications for U.S. jobless benefits fell to 787,000 last week, the Labor Department reported Thursday. Economists surveyed by MarketWatch, on average, had looked for 860,000 initial claims.
Figures on September existing home sales and an Index of Leading Economic Indicators are both due at 10 a.m.
Which companies are in focus?
- Tesla TSLA shares were up more than 4% in premarket trade after delivering quarterly earnings that beat Wall Street expectations.
- Shares of Chipotle Mexican Grill Inc. CMG, +1.34% fell 4.6% ahead of the bell despite returning sales growth over the summer.
- CSX Corp. CSX, -1.76% shares rose 4.2% premarket after the railroad company late Wednesday reported third-quarter results that were better than in the previous quarter.
- Shares of chip maker Xilinx Inc. XLNX, -2.99% were up slightly in premarket trade after the company reported better-than-expected results after Wednesday’s closing bell.
- Dow Inc. DOW shares rose 1.5% in premarket trade after the materials and plastics company reported an adjusted profit and revenues that fell less than expected.
- Shares of Coca-Cola Co. KO rose 2.2% premarket after topping earnings and revenue forecasts.
- AT&T Inc. T shares were up 4% in premarket action after the telecommunications and media giant reported a third-quarter net loss that missed expectations but revenue that topped Wall Street estimates.
- American Airlines Group Inc. AAL shares were down 1.3% ahead of the opening bell after a narrower-than-expected third-quarter loss and revenue that fell less than forecast.
