Futures linked to the DOW JONES remain flat at 33,811 points, while those of the S&P 500 are up 0.10% to 4,123 points. NASDAQ 100 futures were up 0.24% to 12,982 points.
Equity markets closed Wednesday’s session lower. The S&P 500 closed 0.41% lower, while the Nasdaq Composite was down 0.85%. The Dow broke a four-day winning streak to end the day down 38.29 points, or 0.11%.
Major New York indices had opened the session higher, bolstered by the March CPI report, which showed overall pressures had eased over the past month. CPI rose 0.1% mom and 5% yoy in March.
However, trader sentiment changed in the afternoon following the release of minutes from the March Federal Open Market Committee (FOMC) meeting. In particular, Fed officials expect the most recent banking crisis to trigger a recession this year. “Wall Street has turned from focusing on a colder than expected inflation report Fed minutes that raised recession concerns as more banking turmoil could be just around the corner as bank earnings reports approach,” explains Ed Moya, senior market analyst at Oanda.
Today investors get new inflation benchmarks. Specifically, March Producer Price Index (PPI) will be released just before the opening, with the market anticipating a 3.0% yoy increase. The usual weekly figures for initial jobless claims are also published.
Wall Street is also skeptical about tomorrow’s unofficial start of earnings results when banking giants JPMorgan Chase, Citigroup and Wells Fargo release their first-quarter results. “Basically, S&P 500 companies are expecting a new full-year decline in earnings, the second in a row after the fourth quarter,” said Link Gestion’s Juan J. Fernández-Figares. “It remains to be seen whether, as is often the case, analysts have set the bar low for their estimates and most companies are able to beat them. However, it will be what companies say about the future of their business and how they view the macroeconomic scenario that will really “move” values and the market as a whole.
In just a week, it’s their turn to present their Tesla accounts. Investors will be turning their attention to future predictions on whether to expect further price cuts from the electric vehicle giant this year, after slashing prices on both the Model 3 and Model Y just days ago.
Harley-Davidson shares fall 4% after the motorcycle maker announced that CFO Gina Goetter will leave the company at the end of April.
Investors also need to watch out for Novavax’s price today, which is down a little over 12% so far this year. The company cut spending by about $50 million in the first quarter and will continue to make cuts without providing a target. It is also negotiating with the FDA the benefits to be included in booster doses for the fall 2023 vaccination campaign. In March, Novavax announced that there were risks to the continuity of its business given the uncertainties 2023 brings. notably an arbitration against the Gavi Vaccine Alliance and the possibility that the US government will stop funding.
Broadcom was also represented as investors absorbed competition concerns raised by the European Commission about the company’s proposed purchase of cloud computing company VMware.
In commodity markets, oil prices fell this Thursday after rising for two sessions, with investors still showing concerns about a possible US recession and weaker demand for oil. Benchmark Brent crude in Europe fell 0.09% to $87.25 a barrel, while US West Texas Intermediate fell 0.07% to $83.19.
Fixed income is little changed today, with the US 10-year yield at 3.426%. For the two-year bond, the yield offered on the secondary market is 3.975%.
The euro appreciated 0.18% against the dollar before establishing an exchange rate of $1.1019 for each common currency.