US pre-open: Stocks to edge lower amid Covid-19 concerns
By Michele Maatouk
Date: Thursday 25 Jun 2020
(Sharecast News) - US futures pointed to a slightly weaker open on Wall Street on Thursday amid ongoing concerns about a rise in new coronavirus infections.
At 1125 BST, Dow Jones Industrial Average futures were down 0.4%, while S&P 500 and Nasdaq futures were 0.3% and 0.1% lower, respectively.
Spreadex analyst Connor Campbell said: "Though China seems to have got the latest outbreak in Beijing somewhat under control - new cases in the city are down to just 13 - the same cannot be said for the United States."
He noted that in the last 24 hours, another 34,700 Covid-19 cases have been announced stateside - the highest one-day total since late-April's 36,400 peak.
"The fact the US is seeing such an acceleration, more than three months into the Western phase of the pandemic, is both stunning and unsurprising. After all, it didn't take a genius to foresee this happening, with the country headed up by a leader who puts winning elections first, the economy second and, at best, human life a distant third.
"Those kinds of numbers would, in theory, necessitate a far stricter lockdown in the US than was first implemented. Whether that will actually happen, however, is another matter entirely; Trump and co. won't be keen to double-down on the economic toll caused by the initial round of restrictions."
On the data front, investors will eye the release of the latest US jobless claims, due at 1330 BST, along with first-quarter GDP figures.
TD Securities noted that initial claims have been declining but said the level remains historically high. It is expecting claims to slow to 1.40m for the week of June 20, with consensus projecting a larger decline to 1.32mn.
"Despite the high level, continuing claims are down over the last four weeks, consistent with hiring/ rehiring outpacing still-high layoffs, but we see no sign of a rapid downtrend," TD added.
In corporate news, shares of McCormick & Co. could be active after the release of its second-quarter numbers.
Elsewhere, Chuck E. Cheese owner CEC Entertainment was likely to be in focus after filing for bankruptcy.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN