AAPL Stock – Dow set for higher open as jobless claims dip
The Dow was set to open slightly higher on Thursday after data showing fewer weekly jobless claims pointed to an improving outlook for the U.S. economy.
The number of Americans filing new claims for jobless benefits stayed below 500,000 for a third straight week, the Labor Department’s report showed. A separate report confirmed that the U.S. economy accelerated at its fastest pace in nearly four decades in the first quarter. read more
“We expect to see continuing trends of lower jobless claims and have a keen eye on the (personal consumption expenditures) data today and tomorrow that could show further growth in consumption, aiding prospects of a faster economic recovery,” said Robert Pavlik, senior portfolio manager, Dakota Wealth, New York.
But unless economic data “really shocks on the upside, we might not see too much change in market going into the long weekend,” Pavlik added.
Worries about rising inflation and a potential tightening of policy have weighed on Wall Street’s main indexes in May, with the benchmark S&P 500 (.SPX) on course for its smallest monthly gain in four.
Those concerns, however, eased this week as a number of Fed officials said the central bank would maintain its dovish stance, even as they acknowledged they were closer to debating reining in support.
Investors will now look out for the personal consumption expenditures (PCE) report due on Friday as it is the central bank’s preferred inflation measure for its 2% long-term target.
At 8:43 a.m. ET, Dow e-minis were up 126 points, or 0.37%, while S&P 500 e-minis were down 0.25 points, or 0.01%.
Strategists expect the S&P 500 to end the year at about 4,300, according to a Reuters poll. The benchmark index is currently less than 1% away from its record high of 4,238.04 points.
Nvidia Corp ((NVDA).O) forecast second-quarter revenue above analysts’ estimates, but shares fell 0.1% as the company could not say for certain how much of its recent revenue rise was driven by the volatile cryptocurrency-mining market. read more
Best Buy Co (BBY.N) gained 1.8% after it raised its full-year comparable sales forecast as stimulus checks boosted demand. Discount retailer (DG.N) dropped 1.6% after its quarterly sales miss overshadowed a bump to full-year profit outlook. read more
U.S. planemaker Boeing ((BA).N) added about 3% after its European rival Airbus (AIR.PA) outlined an almost two-fold increase in production, citing a strong recovery in aviation from the COVID-19 pandemic.
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