As traders prepare for Thursday's market openings, US equity futures are showing a predominantly downward trend, influenced by a series of recently released economic data. Specifically, futures for the Dow Jones Industrial Average have remained unchanged, while S&P 500 futures have decreased by 0.1%, and Nasdaq futures have experienced a decline of 0.4%.
In the commodities market, oil prices are on the rise, with North Sea Brent crude, the global benchmark, increasing by 0.8% to settle at $73.31 per barrel. Similarly, West Texas Intermediate crude received a boost of 0.8%, reaching $69.80 per barrel. A closer look at the job market reveals some interesting insights.
The private payroll statistics derived from the ADP Institute's employment report, which was released promptly at 8:15 AM ET, showed an increase of 99,000 jobs in August, following a slightly higher rise of 111,000 jobs in July. These figures fell short of Bloomberg's projections, which estimated an increase of 145,000 jobs.
Additionally, weekly unemployment claims for the week ending August 31 fell to 227,000, a decrease from the previous week's total of 232,000. This drop was contrary to expectations, as analysts had predicted a smaller decrease to just 230,000 claims. In another key statistic, the nonfarm productivity figures for Q2 have been upwardly revised, now reporting a growth rate of 2.5%, matching expectations after an initial report of 2.3%.
Looking at consumer sentiment and activity, the Institute for Supply Management is set to release its services purchasing managers' index at 10 AM ET, which is anticipated to decline slightly to 51.3 for August, a decrease from 51.4 recorded in July. Wider market trends reveal fluctuations in global markets; Japan's Nikkei index has closed down by 1.1%, while Hong Kong's Hang Seng index is down by 0.07%.
Contrarily, China's Shanghai Composite saw a small increase of 0.1%. In Europe, the trend varies, with the UK's FTSE 100 dipping by 0.2%, alongside a modest gain in Germany's DAX index, which increased by 0.1% during early afternoon trading. Examining individual stocks in the equities market highlights exciting developments.
Shares of Eastside Distilling ($EAST) have skyrocketed by more than 250% during pre-market trading following the company's announcement of a merger with Beeline Financial. Meanwhile, Modular Medical ($MODD) shares have risen by 20% as the firm announced that it obtained approval from the US Food and Drug Administration for its innovative MODD1 insulin pump.
Conversely, not all companies are faring well; shares of Verint Systems ($VRNT) have dropped by 14% after the company's late Wednesday report revealed fiscal Q2 non-GAAP earnings and revenues that failed to meet Capital IQ analyst estimates. As the day unfolds, market participants will continue to monitor these economic indicators and corporate developments closely, seeking to navigate the complexities of this evolving financial landscape..