Dow, S&P 500, and Nasdaq-100 futures rose Thursday after Federal Reserve Governor Christopher Waller signaled support for holding rates steady in September, pulling Treasury yields lower. Broadcom shares fell in premarket trading even after beating earnings estimates, while Snowflake surged on a raised revenue outlook.
Dow futures rose 0.5% ahead of Thursday's open, while S&P 500 futures gained 0.2% and Nasdaq-100 futures moved up 0.1%. The moves came as Treasury yields cooled from recent gains.
Waller's comments cool Treasury yields
The 10-year Treasury yield ticked lower to around 4.75% after Waller indicated he will support keeping interest rates steady at the Fed's September policy meeting. Elsewhere, West Texas Intermediate crude futures rose to around $92.30 a barrel. Bitcoin climbed to roughly $78,200 as well. Among exchange-traded funds, the State Street SPDR S&P 500 rose 0.2% before the opening bell, while the Invesco QQQ was flat.
Broadcom slides despite earnings beat
Broadcom stock, however, moved the other way. The chipmaker sold off nearly 4% in premarket trading even after beating Wall Street's targets for its fiscal third quarter and issuing a forecast for the current period. Snowflake moved in the opposite direction, as shares soared more than 23% in premarket trading after the company reported fiscal second-quarter earnings and revenue that beat targets and raised its full-year product revenue outlook.
Other earnings movers were mixed Thursday morning. Ciena stock rallied nearly 2% and Five Below shares jumped almost 6%, while Hewlett Packard Enterprise shares tumbled nearly 5% and NetApp stock plunged more than 9%. Victoria's Secret shares fared worst, plummeting more than 17% in premarket trading.
Jobless claims tick up ahead of jobs report
Data released early Thursday added to the backdrop. Weekly initial jobless claims rose to 206,000, slightly more than expected, from 203,000 the previous week. Economists had predicted claims of 205,000.
More data is due before the open: a composite purchasing managers' index economists expect to rise to 56.0 from 54.5, and an Institute for Supply Management services index seen flat at 54.1. Friday brings the Labor Department's August jobs report, which economists expect to show 55,000 jobs added after an unexpected decline of 23,000 in July, with the unemployment rate seen rising to 4.2% from 4.1%.
Source: Investor's Business Daily
Trading involves risk.
Risk Disclaimer
