Stock index futures slipped on Thursday after Micron Technology’s guidance failed to impress investors, while markets await key inflation data expected tomorrow.
S&P 500 futures (SPX) -0.1%, Nasdaq 100 futures (US100:IND) -0.2% and Dow futures (INDU) -0.1%.
The 10-year Treasury yield (US10Y) was unchanged at 4.34%. The 2-year yield (US2Y) was flat at 4.76%. See how Treasury yields have done across the curve at the Seeking Alpha bond page
The major market averages advanced a bit after seesawing through most of Wednesday, as stocks struggled for momentum.
“Markets have struggled over the last 24 hours, with sovereign bonds selling off and equities losing ground for the most part,” Deutsche Bank’s Henry Allen said.
“To be fair, it wasn’t all bad news, and a renewed tech advance did see the Magnificent 7 reach a new all-time high,” Allen added.
Micron Technology (MU) was down 5.8% in premarket trading after the memory chipmaker issued guidance that was in-line with estimates, overshadowing a stronger-than-expected third-quarter.
Markets are also bracing for the personal-consumption expenditures data due on Friday. Core PCE is the Federal Reserve’s preferred inflation gauge.
On the economic front, the May durable goods report is due before the bell, and orders are expected to fall 0.5% on a monthly basis.
Traders will also have their eyes on the final first-quarter GDP numbers, which are expected to land at the same time. Economists expected GDP to stay at a pace of 1.3%.
“U.S. first quarter GDP is revised, and will keep being revised; we will not have a clear picture of current GDP performance for five years or more,” UBS’ Paul Donovan said.
Initial jobless claims, corporate profits, retail inventories and wholesale inventories will also land before the market opens.
“May’s durable goods orders likely will point to a big drag on Q2 GDP growth from equipment investment,” Pantheon Macroeconomics said.
Initial jobless claims are expected to fall to 236K.
“We look for a small dip in initial claims to 235K, due to Juneteenth, but the trend still is rising,” Pantheon Macro added.
The Fed balance sheet will also be released later in the day.
Political action will also keep investors busy today, with the first presidential debate between President Joe Biden and former President Donald Trump on the way.
“Investors tend to regard Biden’s policies as representing some continuity, and to dismiss Trump’s policies as campaign rhetoric that would not actually be implemented,” Donovan added.
