Earnings & Data Lead Busy Thursday Premarket!
It is an economic onslaught Thursday morning. Wall Street will get a look at a host of October data points spanning nearly every sector of the economy. Don’t forget that tomorrow is the last jobs number before the election! All eyes will be on the Street for sure. It’s not just data markets are dealing with, there are plenty of earnings for investors to focus on Thursday. Exxon Mobil Corp. (XOM) , Pfizer Inc. (PFE) and American International Group Inc. (AIG) are all expected to report. Futures are heading lower so far this premarket, continuing the October decline as we open up November trading. Futures for the Dow Jones Industrial Average fell 36 points to 12,994, while those for the Standard & Poor’s 500 index lost 5.5 points to 1,401.30. Futures for the Nasdaq-100 index declined 4.25 points to 2,636.25.
Wall Street resumed trading on Wednesday after the first weather-related, two-day closure since 1888. As expected, it was an event free session with modest swings around breakeven. The Dow Jones industrial average dropped 10.75 points, or 0.08 percent, to 13,096.46 at the close. The Standard & Poor’s 500 Index gained just 0.22 of a point, or 0.02 percent, to finish at 1,412.16. The Nasdaq Composite Index fell 10.72 points, or 0.36 percent, to end at 2,977.23.
ADP Employment Report: The new ADP national employment report can help improve the payroll forecast by providing information in advance of the employment report. By tracking the jobs data, investors can sense the degree of tightness in the labor market. The report is a good gauge of private sector employment heading into Friday’s report by the Labor Department. The current state of the economy starts and ends with job creation. Consumer spending, housing, wages, and so on are all functions of people having gainful employment. The consensus estimate is for 155,000 private sector jobs in the month of October, down from the 162,000 created in September. The range goes from 109,000 to 180,000.
Jobless Claims: New unemployment claims for the week of October 20th, to show the number of individuals who filed for unemployment insurance for the first time. The fewer people filing for unemployment benefits, the more have jobs, the more income in the consumer’s pocket, as well as a forecast on the strength of the economy. The consensus is for an increase of 369,000 for first time jobless claims after a 30,000 decline that is the biggest since July. The four-week average was down 23,000 in the October 20 week, following a revised 46,000 surge. At 10,000 below the month-ago comparison in what points to improvement for both payroll growth and the unemployment rate.. The consensus range goes from 361K to 380K.
The ISM Manufacturing Index: The Institute for Supply Management surveys more than 300 manufacturing firms on employment, production, new orders, supplier deliveries, and inventories. The measure accounts for roughly 20 percent of economic activity. The index gives a great look at the state of manufacturing and the direction it is heading, helping boost exports and domestic activity. The consensus figure is 51.5 for the month of October, after rebounding to 51.5 from 49.6 in August, putting the latest reading back above 50 and into expansion territory. The range goes as low as 49.5 and up to 52.0.
Consumer Confidence: A survey of consumer attitudes on present economic conditions and expectations of future conditions for the month of October. The consensus reading for the month is 74.0 after falling jumping a very strong nine points to 70.3. The range is between 68.5 up to 76.0.