Stock futures point to a positive start in the penultimate session of the month, as the momentum has carried the market through for much of the year lends support. Traders could draw encouragement from the positive results of the Federal Reserve’s bank stress test and a few strong earnings reports. With two sessions to go for the end of the half year, the averages look set to close the period on a buoyant note.
Cues From Wednesday’s Trading:
Wednesday, the major averages ended a volatile session on a mixed note, as traders mulled over comments from Fed Chair Jerome Powell’s comments about further tightening ahead.
The indices opened lower but recovered over the course of the morning before incremental selling led to a pullback in the afternoon. While the Nasdaq Composite ended in the green, the Dow Industrials and S&P 500 Index retreated.
One noteworthy development was the strength in the small-cap space, as evident from the moderately higher close by the Russell 2000 Index.
Among the S&P sectors, utility stocks came under intense selling, while energy and communication services stocks advanced.
U.S. Indices’ Performance on Wednesday
| Index | Performance (+/-) | Value |
| Nasdaq 100 | +0.55% | 15,020.54 |
| S&P 500 Index | +0.06% | 4380.98 |
| Dow Industrials | -0.23% | 33,849.65 |
| Russell 2000 | +0.27% | 1,855.65 |
Analyst Color:
As the first half of the year draws to a close, an analyst said inflation, monetary policy and banking issues will be on investors’ radar, as they assess the impact of these on lending and economic growth.
Chris Fasciano, portfolio manager at Commonwealth Financial Network, said the road ahead for equity markets calls for some caution. He also sees the geopolitical situation as a headwind.
“Given the diversion in potential outcomes, a portfolio balanced across the risk spectrum remains the best path forward for most investors,” Fasciano said.
“It’s important to remain focused on the underlying data—not the headlines—and react accordingly to take advantage of potential opportunities that may arise from any increased volatility.”
Futures Today
Futures Performance On Thursday
| Futures | Performance (+/-) |
| Nasdaq 100 | -0.44% |
| S&P 500 | -0.39% |
| Dow | -0.39% |
| R2K | -0.63% |
QQQ) gained 0.38% to $365.91, according to Benzinga Pro data.
Upcoming Economic Data:
Powell spoke at the Banco de Espana’s fourth conference on Financial Stability, in Madrid Spain early Thursday, in which he discusses the economic situation and the stresses that emerged in the U.S. banking system.
The chairman stressed on inflation remained well above the Fed’s long-run goal of 2%. He delved into the banking crisis that rocked regional banks earlier this year and warned against remaining complacent about the financial system’s resilience.
The Bureau of Economic Analysis is due to release the third estimate of first-quarter GDP data at 8:30 a.m. EDT. Economists, on average, expect quarter-over-quarter GDP growth to be upwardly revised from 1.3% to 1.6%.
The Labor Department will release the customary weekly jobless claims report at 8:30 a.m. EDT. The consensus estimate calls for the number of individuals claiming unemployment benefits to come in at 266,000 in the week ended June 24 compared to 264,000 in the week ended June 17.
The National Association of Realtors is all set to announce its pending home sales index for May at 10 a.m. EDT. The pending home sales may have edged up 0.2% month-over-month in May following unchanged reading in April.
The Treasury will auction four-week and eight-week notes at 11:30 a.m. EDT.
Atlantic Fed President Raphael Bostic, a member of the Federal Open Market Committee, will speak at 3 p.m. EDT.
Stocks In Focus:
- Virgin Galactic Holdings, Inc. (NYSE:SPCE) rose over 4% in premarket trading amid ongoing momentum due to the impending first commercial flight to the edge of space.
- BlackBerry Ltd. (NYSE:MU) climbed about 15% and 4%, respectively in reaction to their quarterly results.
- Acuity Brands, Inc. (NYSE:RAD) are the major names due to report their quarterly results ahead of the market open.
- Among those reporting after the close are Nike, Inc. (NYSE:PRGS).
See also: Best Futures Brokers
Commodities, Bonds, Other Global Equity Markets:
Crude oil futures rose 0.17% to $69.68 in early European trading on Thursday. The commodity rallied 2.75% in the previous session.
The yield on the benchmark 10-year Treasury note edged down 0.037 percentage points to 3.794%.
Major Asian markets that remained open-ended Thursday’s session on a lackluster note, while the European markets advanced strongly in late-morning trading. The Indian, Malaysian and Singaporean markets were closed for a public holiday.
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