MW: U.S. stock futures dip into the red ahead of GDP report
Wall Street was set to open slightly lower on Thursday, with stock futures dipping into the red ahead of closely watched second-quarter growth data that could impact the timing of the first Federal Reserve rate hike.
Futures for the Dow Jones Industrial Average YMU5, +0.08% slipped 33 points, or 0.2%, to 17,649, while those for the S&P 500 index ESU5, +0.07% fell 4.50 points, or 0.2%, to 2,097. Futures for the Nasdaq 100 index NQU5, +0.26% lost 4.25 points, or 0.1%, to 4,560.75.
GDP data: The key event on Thursday is the release of second-quarter gross domestic product data due at 8:30 a.m. Eastern Time. Economists polled by MarketWatch forecast the economy grew by 2.8% in the quarter, staging a rebound after a 0.2% contraction in the first three months of the year.
“Today’s 2Q GDP update will weigh heavily on whether the Fed hikes in September or if it will again delay,” said John Kicklighter, chief strategist at DailyFX, in a note.
The Fed on Wednesday kept rates on hold as expected, but hinted strongly that it’s ready to start tightening monetary policy in the fall, depending on improvement in incoming data.
U.S. stocks closed higher on Wednesday after the Fed decision, although action was choppy immediately after the release of the report. The dollar rose on the expectations of a 2015 rate hike, with the ICE dollar index DXY, +0.12% continuing its ascent on Thursday as well.
Also on the lineup are weekly jobless claims, due at 8:30 a.m. Eastern. Forecasts are for a climb to 275,000 in the week ended July 25, up from 255,000 in the week before, which was the lowest level since November 1973.
Earnings: Reporting ahead of the bell, consumer-goods company Procter & Gamble Co. PG, +0.49% is forecast to report earnings of 95 cents a share on revenue of $17.9 billion, according to analysts surveyed by FactSet.
Cable-TV provider Time Warner Cable Inc. TWC, +0.12% is projected to report second-quarter earnings of $1.80 a share, while oil and gas explorer ConocoPhillips COP, +1.26% is forecast to earn 4 cents a share, down from $1.61 a share a year ago.
Colgate-Palmolive Co. CL, +0.79% and Valero Energy Corp. VLO, +1.49% are also slated to report premarket.
And after the market closes, earnings from game developer Electronic Arts Inc. EA, +0.53% biotech company Amgen Inc. AMGN, -0.74% and online networking site LinkedIn Corp. LNKD, +1.53% are on tap.
Movers & shakers: Shares of Facebook Inc. FB, +1.78% lost 2.4% ahead of the bell after the social-media company late Wednesday reported a drop in second-quarter earnings.
Whole Foods Market Inc. WFM, -0.29% could also be active after the supermarket chain on Wednesday posted earnings that slightly missed forecasts.
U.S.-listed shares of Nokia Corp. NOK, -0.45% jumped 6.2% in premarket trading after the Finnish telecom-equipment company reported better-than-expected second-quarter profit.
Other markets: Stock markets in Asia closed mixed, with the Shanghai Composite Index SHCOMP, -2.20% shaving off an earlier gain and ending 2.2% lower.
European stocks were also mixed, with the Stoxx Europe 600 index SXXP, +0.60% inching higher on the back of a round of well-received earnings reports.
Gold GCQ5, -0.70% declined to trade around a five-and-a-half-year low, while crude-oil futures CLU5, +0.86% rose 0.3%.
