U.S. stock futures weakened Thursday, with investors looking to hand back some of the previous session’s strong gains ahead of the release of more important jobs data.
By 07:05 ET (11:05 GMT), the Dow Futures contract was down 85 points, or 0.3%, S&P 500 Futures traded 8 points, or 0.2%, lower and Nasdaq 100 Futures dropped 15 points, or 0.1%.
The main indices on Wall Street posted hefty gains Wednesday, after disappointing private payrolls data resulted in a retreat in U.S. Treasury yields, with the benchmark 10-year yield falling back from the highs last seen in 2007.
The 30-stock Dow Jones Industrial Average rose 0.4%, breaking a three-day losing streak, the broad-based S&P 500 climbed 0.8%, while the tech-heavy Nasdaq Composite rose 1.4%.
More employment data due
Investors get another slice of jobs data in the form of unemployment claims for the previous week. These are expected to increase to 210,000, an increase from the previous week’s 204,000, in another indication of a cooling labor market.
This release can be seen as a precursor to Friday’s widely-watched monthly official jobs report, which is expected to show the economy added 163,000 positions last month, could factor into the Fed’s thinking heading into its next meeting in November.
The U.S. central bank signaled it could raise rates again this year and only saw two reductions next year, suggesting it won’t lower interest rates as quickly next year as investors had expected as of mid-summer.
Clorox to fall on weak guidance
In corporate news, earnings are due from alcohol drinks company Constellation Brands (NYSE:STZ), packaged food giant ConAgra Foods (NYSE:CAG) and jeans retailer Levi Strauss (NYSE:LEVI).
Clorox (NYSE:CLX) will also be in the spotlight after the cleaning products maker said it expects to post a first-quarter loss, much weaker guidance than had been previously provided.
The auto sector will also be in focus after the United Auto Workers and Ford (NYSE:F) have reportedly narrowed their differences on pay increases after a new offer from the automaker, as the union’s strike against the ‘Detroit Three’ enters its 21st day.
Crude continues Wednesday’s selloff
Oil prices retreated Thursday, continuing the previous session’s selloff as traders fretted about an uncertain demand outlook following a significant build in U.S. gasoline inventories.
Crude settled more than $5 a barrel lower on Wednesday, the sharpest one-day loss in more than a year, following the release of data showing the largest weekly build in almost two years for stockpiles of U.S. gasoline.
The Organization of Petroleum Exporting Countries and allies, known as OPEC+, had reaffirmed on Wednesday that Saudi Arabia and Russia would continue to cut output by at least 1.3 million barrels a day until the end of the year.
By 07:05 ET, the U.S. crude futures traded 1.8% lower at $82.69 a barrel, while the Brent contract dropped 1.7% to $84.39.
Additionally, gold futures rose 0.1% to $1,836.35/oz, while EUR/USD traded 0.1% higher at 1.0513.
