US equity futures are currently experiencing narrow fluctuations as traders analyze fresh insights into the US economy, particularly regarding Q2 growth data. The Dow Jones Industrial Average futures experienced a slight increase of 0.1%, while S&P 500 futures faced a modest decline of 0.2%, and Nasdaq futures diminished by 0.3%.
In the realm of commodities, oil prices have taken a downturn. Front-month global benchmark North Sea Brent crude has decreased by 1.4%, settling at $80.55 per barrel. Similarly, US West Texas Intermediate crude has also fallen by 1.4%, reaching $76.49 per barrel, reflecting ongoing uncertainties in the market.
This morning, the Q2 gross domestic product (GDP) report, which was released at 8:30 am ET, demonstrated a promising annualized growth rate of 2.8%, an improvement from the previous quarter's growth of 1.4%. Analysts had projected a more conservative growth estimate of 2%, according to data compiled by Bloomberg.
In a somewhat concerning development, new orders for durable goods saw an unexpected decrease of 6.6% in June following a slight increase of 0.1% in May. Analysts had predicted a modest gain of 0.3% for that month. On a more positive note, new unemployment claims dropped to 235,000 during the week ending July 20, down from 245,000 claims in the previous week.
This decline was also better than analysts' expectations, which estimated a smaller drop to 238,000. Looking at international markets, Japan's Nikkei index closed significantly lower at 3.3%, while in Hong Kong, the Hang Seng index fell by 1.8%. China's Shanghai Composite also finished 0.5% lower.
Across Europe, the UK's FTSE 100 index decreased by 0.5%, and Germany's DAX index dropped by 1.2% amid early afternoon trading. As for equities, the news isn't very encouraging for Ford Motor ($F) as its shares plummeted by 13% in pre-bell trading. This decline comes following the automaker's release of Q2 adjusted earnings, which fell short of analysts' expectations.
In the travel sector, shares of Southwest Airlines ($LUV) fell by 5% after the airline reported lower adjusted earnings for the second quarter. Contrarily, there were some positive developments in the stock market as well. Shares of IBM ($IBM) saw an increase of 3.3% after the company posted adjusted profits and revenues for Q2 that exceeded Wall Street projections.
Moreover, Hasbro ($HAS) shares rose by 7% thanks to its Q2 results that outperformed analyst estimates. Overall, as traders continue to process the latest economic data and corporate earnings reports, the market is poised for fluctuations as various sectors react to the information. The ongoing monitoring of these economic indicators will be crucial for investors looking to navigate the complexities of the financial landscape..