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US pre-open: Futures mixed ahead of jobless data

By Iain Gilbert

Date: Thursday 09 Apr 2020

US pre-open: Futures mixed ahead of jobless data

(Sharecast News) - US futures had stocks opening mixed on Thursday ahead of this week's jobless claims data and the Easter long weekend.
As of 1230 BST, Dow futures were up 0.17%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.12% and 0.14% lower, respectively.

The Dow closed 779.71 points higher on Wednesday as a volatile week for indices continued after Senator Bernie Sanders dropped out of the presidential race and the Federal Reserve indicated it was willing to keep rates near zero until after the economy had felt the full weight of Covid-19.

The major focus for Thursday will be this week's US jobless claims data, with economists expecting an increase of 5.0m - which follows the last two record-shattering readings of 6.6m and 3.3m.

IG's Chris Beauchamp said: "Yesterday saw an impressive recovery for US markets, with 90% of issues on the NYSE moving higher for the second session in a week, a rare occurrence but one that points towards solid returns in the near term.

"It looks like this much-derided rally still has some way to go, frustrating those expecting further declines. Buyers should tread carefully, however, since the economic outlook remains grim, hardly a conducive environment for equities in the medium-term."

The number of Covid-19 cases in the US has topped 432,400, claiming as many as 7,097 lives.

On the macro front, initial jobless claims data will be out at 1330 BST, while the University of Michigan's consumer sentiment index will follow at 1500 BST.

Federal Reserve chairman Jerome Powell will also give an update on the US economy at 1500 BST after minutes published overnight from the Fed's last FOMC meeting on 15 March revealed that the central bank was prepared to keep rates near zero until the economy had "weathered" the Covid-19 impact.

"With regard to monetary policy beyond this meeting, these participants judged that it would be appropriate to maintain the target range for the federal funds rate at 0-0.25% percent until policymakers were confident that the economy had weathered recent events and was on track to achieve the Committee's maximum employment and price stability goals," the statement read.

No major corporate earnings were slated for release on Thursday.

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