Premarket: S&P 500 Futures Point To Cautious Start – Initial Jobless Claims Better Than Expectations

Summary:

S&P 500 futures seesaw as the negotiations for a new stimulus package in Washington between Republicans and Democrats continue. Better than expected jobless

S&P 500 futures seesaw as the negotiations for a new stimulus package in Washington between Republicans and Democrats continue. Better than expected jobless claims would support the index in early trading. On the economic data, the United States Initial Jobless Claims came in at 1186K below the forecasts of 1415K in the week of July 31. The 4-week average for Initial Jobless Claims came down to 1337.75K on July 31. The Continuing Jobless Claims registered in at 16.107M, below the expectations of 16.72M on July 24.

In corporate news, Hilton reported a loss of 0.61/share for the 2Q, above the estimates of 0.31 a share loss, revenue was also below forecasts. Costco reported more than 75% jump in digital sales, while the July comparable sales rise 13.2%, beating Wall Street expectations.

The S&P 500 futures trading 0.08% lower at 3,313. The Dow Jones futures are 0.04% lower at 27,065, while the Nasdaq futures are 0.06% higher at 11,099.

In Asia, stocks closed mostly lower, while RBI left interest rates unchanged at 4% in a move that surprised markets.

European Markets Lower Despite Better Factory Orders In Germany

European markets are under selling pressure despite better than expected German factory orders. The Dax index is 0.83% lower at 12,554. Bank of England (BOE) kept interest rates unchanged at record low levels of 0.1% and left the bond purchases programme unchanged. The BOE expects the UK economy to contract by 9.5% in 2020 before returning to growth by 9% in 2021. In London, the FTSE 100 is 1.78% lower at 5,996. The CAC 40 index is 1.21% lower at 4,873.

Crude Oil Price Pare Losses After Better Jobless Claims

Crude oil returns to positive territory after better than expected jobless figures. WTI crude oil futures trade 0.51% higher at 42.30, while the Brent crude oil is 0.60% higher at $45.43.

In forex markets, EURUSD turns lower on the day after hit the high at 1.1916. As of writing the pair is 0.10% lower at 1.1849. GBPUSD is 0.32% higher at 1.3155 after the Bank of England kept rates unchanged.