Wall Street looks set to extend its weak run on Thursday, as indicated by the index futures, which point to a notably lower opening. After Federal Reserve sounded out the possibility of a premature scale back in stimulus, weak manufacturing data from China has accentuated the anxiety among traders. Fears concerning a further setback to growth in the eventuality of central banks deciding to normalize interest rates could keep sentiment subdued and trigger more profit taking in the still overbought markets.
As of 6:15 am ET, the Dow futures are slipping 142 points, while the S&P 500 futures are declining 18.40 points and the Nasdaq 100 futures are moving down 33 points.
After spending much of Wednesday's session above the unchanged line, U.S. stocks retreated in late afternoon trading, ending notably lower, as traders digested the FOMC minutes that suggested that some of the FOMC members discussed the possibility of scaling back stimulus as early as June.
On the economic front, St. Louis Federal Reserve Bank President James Bullard is scheduled to speak on monetary policy and the economy in London at 6:05 am ET.
The Labor Department is due to release its jobless claims report for the week ended May 18th at 8:30 am ET. Economists expect claims to have risen to 345,000 from 360,000 in the previous week.
At 9 am ET, the Federal House Finance Agency is scheduled to release the results of its house price survey for March. The house price index based on the survey is expected to increase 0.9 percent month-over-month compared to a 0.7 percent increase in February.
The Commerce Department will release its new home sales report for April at 10 am ET. The consensus expectations call for new home sales to come in at a seasonally adjusted annual rate of 425,000 from 417,000 in March.
In corporate news, Hewlett-Packard (HPQ) reported second quarter earnings that exceeded estimates, while its revenues missed expectations. The company's full year guidance was positive.
Limited Brands' (LTD) first quarter results were better than expected, while the guidance was in line. Semtech (SMTC) reported first quarter earnings that were in line, while its revenues exceeded expectations. The company's second quarter guidance was positive. Synposys' (SNPS) second quarter results were better than expected and its full year guidance was positive.
Pacific Sunwear (PSUN) reported first quarter a loss from continuing operations of 14 cents per share on a non-GAAP basis, narrower than the loss of 20 cents per share last year. Net sales from continuing operations rose modestly to $169.8 million. For the second quarter, the company expects an adjusted loss of 2-5 cents per share on revenues of $209 million to $219 million. The results were better than expected and the guidance was positive.
Aeropostale (ARO), Gap (GPS), Marvell (MRVL), Mentor Graphics (MENT), New York & Co. (NWY), Nordson (NDSN), Pandora Media (P), Ross Stores (ROST), Salesforce.com (CRM), Sears Holding (SHLD), Shoe Carnival (SCVL), Williams-Sonoma (WSM) and Zumiez (ZUMZ) are among the companies due to release their quarterly earnings after the close of trading.
The major Asian markets fell across the board, as the markets in the region took cues from Wall Street's reaction to the Fed's thinking of the itinerary for stimulus withdrawal. The mood was also dampened by a report that showed that the Chinese manufacturing sector experienced a contraction for the first time in seven months.
The Japanese market fell sharply, as the yen strengthened and after the yield on the Japanese 10-year bond rose to a 1-year high of 1 percent.
Japan's Nikkei 225 closed down 1,143.28 points or 7.32 percent at 14,484. All but 2 of the index components retreated, with Shinsei Bank, Mitsubishi Motors, Tokyu Land, Sumitomo Electric Industries, Tokyo Power and Sharp leading the slide. Australia's All Ordinaries closed 101.30 points or 1.97 percent lower at 5041. The market witnessed an across the board sell-off, with consumer staple, energy, financial, material and utility stocks seeing notable weakness. Hong Kong's Hang Seng Index closed at 22,670, down 591.40 points or 2.54 percent.
A report released by Markit Economics and HSBC showed that China's manufacturing activity contracted in May, with the purchasing managers' index based on the survey coming in at 49.6 compared to 50.4 in April. Economists expected the index to have remained unchanged.
European stocks are also retreating sharply, with the major averages in the region declining over 2 percent each, as fears of a withdrawal of stimulus in the U.S. and weak manufacturing data led to profit taking.
In corporate news, brewer SABMiller reported fairly in line EBITDA for its fiscal year ended March 31st and also said its markets should remain broadly unchanged in the coming months. Swiss Life said its first quarter premium income rose 14 percent to 6.970 billion francs, higher than forecasts by most analysts. U.K.'s United Utilities reported higher profits and revenues for its full year.
On the economic front, Markit Economics reported that private sector activity in the euro area continued to contract. The composite purchasing managers' index measuring performance of the manufacturing and the service sector rose 0.8 points to 47.7 in May. Revised GDP report released by the U.K. Office for National Statistics showed that the U.K. GDP rose at an unrevised rate of 0. 3 percent in the first quarter, reversing the 0.3 percent drop in the previous quarter.
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Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.