U.S. equity futures showed a positive trajectory on Thursday as investor sentiment received a boost from the strong quarterly earnings released by Meta Platforms, the renowned social media giant. The Dow Jones Industrial Average futures reflected a modest increase of 0.1%, while the S&P 500 futures surged by 0.4%.
Similarly, Nasdaq futures also experienced a notable rise, marking an uptick of 0.4%. The positive movement in the market can be largely attributed to Meta Platforms' impressive second-quarter earnings results, which exceeded analyst expectations significantly. This favorable performance led to a substantial pre-market gain of 8% in the company's share price, as investors responded positively to the robust financial outlook. In the commodities market, oil prices witnessed an upswing, with the front-month global benchmark, North Sea Brent crude, rising by 0.6% to reach $81.31 per barrel.
Meanwhile, U.S. West Texas Intermediate crude also experienced a similar increase of 0.6%, trading at $78.36 per barrel. As we look ahead, new unemployment claims are set to be released at 8:30 am ET. Analysts predict an increase in claims, with expectations rising to 236,000 for the week ending July 27, compared to the 235,000 claims reported in the previous week.
Additionally, nonfarm productivity projections suggest a rise at an annualized rate of 1.7% for Q2, a notable improvement over the 0.2% growth recorded in Q1. Meanwhile, unit labor costs are anticipated to moderate, showing a growth rate of 1.8% for the quarter down from the alarming 4% growth previously noted, according to estimates gathered by Bloomberg. Furthermore, the Manufacturing Purchasing Managers' Index (PMI), which is scheduled for release at 9:45 am ET, is expected to register at 49.5 for July, a drop from the 51.6 level observed the prior month.
Concurrently, the Institute for Supply Management's manufacturing index is due at 10 am ET, with forecasts suggesting a slight improvement to 48.8 in July from 48.5 in June. These economic indicators will be closely monitored as they play a crucial role in shaping investor sentiment and strategies moving forward..