S&P, Nasdaq, Dow futures slip ahead of jobless claim
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Stock index futures pointed to a lower opening Thursday, giving back a little of the gains in the previous session.
S&P futures (SPX) -0.3%, Dow futures (INDU) -0.3% and Nasdaq 100 futures (NDX:IND) -0.2% were lower.
“Relief … extended across financial markets yesterday, as after a fraught start we saw bonds and equities rally back following a tough few days,” Deutsche Bank’s Jim Reid said. “However, the recovery accelerated with bad employment data, so the answer to how to get out of the recent rout was clearly the return of bad news is good news.”
Rates were steady after a couple of breakneck session. The 10-year Treasury yield (US10Y) was down 1 basis point to 4.72% and the 2-year yield (US2Y) was down 1 basis point to 5.04%. The 30-year (US30Y) rose 1 basis point to 4.89%.
“Yields breached key levels yesterday,” ING said. “Though it was 30Y USTs that hit 5%, it was enough to trigger a relief rally.”
“We do not see the broader narrative having changed, leaving longer yields still exposed to upside. But as pain tolerances are being tested out, data like tomorrow’s US payrolls could be more decisive.”
Weekly initial jobless claims figures arrive before the bell. The consensus is for a rise to 210K.
“We are increasingly inclined to think to think that the drop in claims is a reflection of the decline in WARN notices of mass layoffs and plant closures in July; they tend to lead jobless claims by a couple months,” Pantheon Macro said. “But WARN notices rebounded strongly in August – probably in part due to the 30K layoffs at Yellow — so it would be reasonable to expect claims to rise over the next few weeks.”
The Worker Adjustment and Retraining Notification Act requires 60 days notice of closings and major layoffs.
