Futures tracking the Nasdaq index edged higher on Thursday, with mega-cap technology stocks leading gains ahead of a weekly unemployment report that will allow investors to gauge the strength of the labor market.
At 8:05 a.m. ET, Dow E-minis were down 139 points, or 0.4%, S&P 500 E-minis were down 11.25 points, or 0.26% and Nasdaq 100 E-minis were up 10 points, or 0.07%.
The Labor Department's report, due at 8:30 a.m. ET, is expected to show the number of Americans filing for new claims for unemployment benefits fell for the week ended July 10.
Wall Street has been spearheaded by worries about higher inflation and positive economic data since mid-June, with investors fretting over a sooner-than expected hawkish shift by the Federal Reserve on its monetary policy, that hinges on an equitable recovery of the jobs market.
On his first day of testimony before Congress, Fed Chair Jerome Powell on Wednesday said he is confident recent price hikes are associated with the country's post-pandemic reopening and will fade, and that the central bank should stay focused on getting as many people back to work as possible.
Powell is scheduled to appear before the U.S. Senate Banking Committee at 9:30 a.m. (1330 GMT).
Stocks making the biggest moves in the premarket:
Morgan Stanley – Morgan Stanley beat estimates by 20 cents with second-quarter earnings of $1.85 per share, while revenue topped forecasts as well, helped by an acceleration in investment banking activity. Despite the beat, Morgan Stanley shares fell 1.6% in the premarket.
American International Group Inc – AIG shares surged 5% in premarket trading after it announced a deal to sell a 9.9% stake in its life insurance and retirement services unit toBlackstone(BX) for $2.2 billion. The deal also calls for Blackstone to manage an initial $50 billion in assets backing AIG's life insurance policies and annuities, increasing to about $100 billion over the next six years.
AMC Entertainment - AMC tumbled another 6.2% in the premarket after the movie theater operator's stock fell for the fourth straight day and the eighth time in nine sessions Wednesday. The skid was capped by a 15% drop in yesterday's session, bringing its total loss over that time to about 41%.
UnitedHealth – The health insurer saw its second-quarter profit fall by more than a third from a year ago, as consumers resumed elective medical care that they had postponed due to the pandemic. However, UnitedHealth did beat estimates on the top and bottom lines, earning an adjusted $4.70 per share compared to a consensus estimate of $4.43.
Bank of New York Mellon – Bank of NY Mellon beat estimates by 13 cents with quarterly earnings of $1.13 per share and revenue topping estimates as well. Its board also reauthorized the repurchase of up to $6 billion in common stock.
Truist Financial Corp – The bank that resulted from the 2019 merger of SunTrust and BB&T reported an adjusted quarterly profit of $1.55 per share, beating the $1.19 consensus estimate, while revenue also came in above Wall Street projections. Results were helped by strong fee and wealth management income, among other factors.
U.S. Bancorp – US Bancorp earned $1.28 per share for the second quarter, 14 cents above estimates, with revenue beating estimates as well. Its results got a boost from an improving economy which helped boost credit and debit card revenue and allowed it to lower its credit loss provision.
NortonLifeLock Inc. – Norton LifeLock is in talks to buy fellow cybersecurity firm Avast, in a deal that would expand Norton's presence in consumer software. Avast said the two sides were in advanced discussions about a possible cash-and-stock deal. Norton LifeLock fell 2.6% in the premarket.
Johnson & Johnson – Johnson & Johnson is recalling some batches of its Neutrogena and Aveeno spray sunscreen products after benzene was found in some samples. Johnson & Johnson said benzene – which can potentially cause cancer – is not used in the manufacture of the products and it is investigating how it wound up in some products. Shares fell 1% in the premarket.
General Motors – NHSTA urged owners of about 50,000 Chevy Bolts to park outside after charging the electric vehicles, due to fire risks. GM, which makes the Bolt, had issued a similar warning earlier in the day about vehicles from the 2017 to 2019 model years.
Netflix – Netflix hired formerFacebookexecutive Mike Verdu to lead its video games unit, as it steps up efforts to grow beyond its flagship video streaming business. The stock rose 1.8% in premarket action.
Beyond Meat, Inc. – Beyond Meat opened an online store in China on e-commerce platformJD.com(JD), as it tries to boost sales of its plant-based meat alternatives in that country.
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