Plus   Neg

Street Might Open In Negative Territory


Amid chaotic developments in the national political atmosphere, market is in a nervous mood. Initial trading in the U.S. future trading suggest that Wall Street will open broadly lower. Jobless claims that would provide a clear picture of the job market is keenly watched for the day. Asian shares finished lower, while European shares are in a negative territory.

As of 6.45 am ET, the Dow futures were falling 99 points, the S&P 500 futures were shedding 9.00 points and the Nasdaq 100 futures were slipping 17.25 points.

U.S. Stocks closed sharply lower on Wednesday. The tech-heavy Nasdaq pulled back well off Tuesday's record closing high. The Dow tumbled 372.82 points or 1.8 percent to 20,606.93, the Nasdaq plunged 158.63 points or 2.6 percent to 6,011.24 and the S&P 500 slumped 43.64 points or 1.8 percent to 2,357.03.

On the economic front the Labor Department's Jobless Claims for the week will be issued at 8.30 am ET. The economists are looking for new claims consensus of 240K, slightly up from 236K last year. In the previous 4 weeks the moving average was 243.50K.

The Federal Reserve Bank of Philadelphia's Fed Business Outlook Survey for May is expected at 8.30 am ET. The forecasters are projecting General Business conditions business to record a decline to 19.6 from 22.0 last month.
The Conference Board's Leading Indicators for April will be published at 10.00 am ET. The consensus is for an increase of 0.3 percent, compared to 0.4 percent in the prior period.

The Energy Information Administration or EIA's weekly information on natural gas stocks in underground storage for the U.S. and three regions of the country will be released at 10.30 am ET. The prior week report was 45 bcf.
2-year FRN Note, 2-year, five year and seven year Treasury Note auction announcements will be at 11.00 am ET.

Cleveland Federal Reserve Bank President Loretta Mester will speak at the Economic Club of Minnesota in Minneapolis at 1.15 pm ET.

Fed Balance Sheet for the week will be revealed at 4.30 pm ET. The previous record was $4.474 trillion.

The Fed Money Supply Data for the week will be issued at 4.30 pm ET. The M2 weekly change last week was $35.4 billion.

In the corporate segment, Hibbett Sports, Inc. (HIBB) announced a cut in its fiscal 2018 earnings per share to a range of $2.35 to $2.55, compared to previous guidance of $2.65 to $2.85. Comparable store sales are expected in the range of negative 1.0 percent to positive 1.0 percent, compared with previous guidance of an increase in the low single-digit range.

Net income for the 13-week period ended April 29 fell to $20.9 million compared to $27.9 million, prior year. Earnings per share was $0.97 compared to $1.22. Net sales for the 13-week period decreased 2.3 percent to $275.7 million from $282.1 million, last year. Comparable store sales decreased 4.9 percent.

General Motors (GM) announced key restructuring actions in its International operations. In South Africa, Isuzu will acquire GM's light commercial vehicle manufacturing and GM will cease manufacturing and sales of Chevrolet in the domestic market. The company will focus its GM India manufacturing operations on producing vehicles for export only. The Chevrolet brand will be phased out of both markets by the end of 2017.

GM International will streamline its regional headquarters office in Singapore, which will retain responsibility for strategic oversight of the remaining regional business and markets, including Australia and New Zealand, India, Korea and Southeast Asia.

Asian stocks fell on Thursday as U.S. political turmoil continued to keep investors nervous. China's Shanghai Composite index dropped 14.30 points or 0.46 percent to 3,090.14 as price growth in China's major cities recorded a softening. Hong Kong's Hang Seng index was down 168.07 points or 0.66 percent at 25,125.56.

Japanese shares hit 2-1/2-week lows. The Nikkei average fell 261.02 points or 1.32 percent to 19,553.86, the lowest level since May 2. The broader Topix index also closed 1.32 percent lower at 1,555.01.

Australian shares tumbled amid continued declines in banking stocks.The benchmark S&P/ASX 200 dropped 47.70 points or 0.82 percent to 5,738.30 while the broader All Ordinaries index ended down 45.70 points or 0.79 percent at 5,775.50.

European shares are trading broadly down. CAC 40 of France is declining 56.87 points or 1.07 percent, DAX of Germany is down 106.18 points or 0.84 percent. FTSE 100 of England is slipping 99.73 points or 1.33 percent. Swiss Market Index of Switzerland is declining 93.53 points or 1.04 percent.

Euro Stoxx 50 is falling 1.10 percent.

by RTTNews Staff Writer

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