U.S. stock index futures remain higher after weekly data on jobless claims. U.S. initial jobless claims drop 2,000 to 229,000 in June 18 week.
- Initial Jobless Claims:-2K to 229K vs. 225K expected and 231K prior (revised from 229K).
- 4-week moving average of 223,500 rose from 219,000 in the previous week.
- The advance seasonally adjusted insured unemployment rate was 0.9% forthe week ended June 11, unchanged from the previous week's unrevised rate.
- The advance number of actual initial claims under state programs, unadjusted, totaled 202,844 in the week ended June 18, a decrease of 3,255 (or 1.6%) from the previous week. The seasonal factors had expected a decrease of 1,388 (or 0.7%) from the prior week. And there were 398,284 initial claims in the comparable week in 2021.
- Continuing jobless claims of 1.315M vs. 1.315M consensus and 1.310M prior.
- Q1 CurrentAccount:-$291.4B vs. -$277.0B consensus; -$224.8B previous (revised from -$217.9B).
- The U.S. current account deficit widened by $66.6B, or 29.6%, in Q1 2022.
- The deficit was 4.8% of current-dollar gross domestic product, up from 3.7% inQ4 2021.
- The current account figure reflects the combined balances on trade in goods and services and income flows between U.S. residents and other countries.
Powell's second day of testimony before the House Financial Services Committee is at 10 a.m. ET (1400 GMT). Money markets are pricing in 75 basis point (bps) increase in rates next month, followed by a 50 basis point rise in September.
Meanwhile, the Fed is set to release the results of its 2022 stress test, which will assess how much capital banks would need to withstand a severe economic downturn.
Market Snapshot
At 08:36 a.m. ET, Dow e-minis were up 51 points, or 0.17%, S&P 500 e-minis were up 11.75 points, or 0.31%, and Nasdaq 100 e-minis were up 50.25 points, or 0.43%.
Pre-Market Movers
Snowflake (SNOW) – The cloud computing company's stock was upgraded to "overweight" from "neutral" at J.P. Morgan Securities, which pointed to an attractive valuation as well as extremely high satisfaction levels among Snowflake customers. Snowflake surged 6.1% in premarket trading.
Revlon (REV) – Revlon slid 5.7% in the premarket, signaling a possible end to the three-day win streak that followed its Chapter 11 bankruptcy filing last week. The cosmetics maker's shares have surged more than fourfold over the past 3 sessions.
Occidental Petroleum (OXY) – Berkshire Hathaway (BRK.B) bought an additional 9.6 million shares of Occidental Petroleum, raising its stake in the energy producer to 16.3%. Occidental rallied 2.9% in premarket action.
WeWork (WE) – The office-sharing company's stock rose 3.3% in the premarket after Credit Suisse initiated coverage of the stock with an "outperform" rating. Credit Suisse feels WeWork is among the companies that will benefit from the increase in hybrid work and co-working, as well as demographic trends.
Accenture (ACN) – The consulting firm's shares fell 3.3% in the premarket after its quarterly revenue beat forecasts but earnings were impacted by the cost of its Russia exit. Accenture raised its full-year revenue forecast but cut the top end of its projected earnings range due to a greater-than-expected negative impact from foreign exchange.
Darden Restaurants (DRI) – The parent of Olive Garden and other restaurant chains reported better-than-expected profit and revenue for its latest quarter. It also increased its quarterly dividend by 10% and authorized a new $1 billion share repurchase program. Darden added 3.4% in premarket trading.
FactSet (FDS) – The financial information provider beat top and bottom-line estimates for its latest quarter. It also backed its prior full-year guidance, with growth projected at the upper end of its projected range.
Rite Aid (RAD) – Rite Aid shares jumped 4.3% in premarket action after reporting better-than-expected revenue and a smaller-than-expected quarterly loss.
KB Home (KBH) – KB Home reported quarterly earnings of $2.32 per share, beating the $2.03 consensus estimate, and the home builder's revenue also came in above analyst forecasts. However, it said rising interest rates and higher prices were beginning to have a negative impact on sales growth. KB Home jumped 3% in premarket trading.
Steelcase (SCS) – Steelcase shares rose 3.1% in premarket trading after the office furniture maker reported better-than-expected quarterly results. Higher prices and increased demand helped offset rising costs stemming in part from supply chain difficulties.
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