Stock futures trading lower ahead of jobless claims, Fed minutes

Investment strategist on market outlook for 2022

BMO Capital Markets Chief Investment strategist Brian Belski on his outlook for the markets and inflation.

U.S. equity futures were trading lower ahead of a slew of economic reports being released before this week's Thanksgiving holiday.

The major futures indexes suggested a decline of 0.3% when the opening bell rings.

The Commerce Department will release the second estimate of 3Q GDP.  The Refinitiv forecast is for a seasonally adjusted annual growth rate of 2.2%. That’s slightly above the first estimate of 2.0%, but well below the 6.6% growth rate in the second quarter.

At the same time, the Labor Department is out with its tally of new claims for unemployment benefits for last week. Expectations are for 260,000, down 8,000 from the previous week to another pandemic low. Continuing claims, which track the total number of unemployed workers collecting benefits, are anticipated to slip by 47,000 to 2.033 million, also a pandemic low.

Other reports include durable goods, income & spending, new home sales and the University of Michigan's consumer sentiment reading.

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The Fed will release minutes later in the day from its October policy meeting, potentially giving investors more details on the central bank’s plan to start trimming bond purchases that have helped keep interest rates low.

Investors have been watching to see if pressure from rising inflation will goad the Fed into speeding up its plans for trimming bond purchases and raising its benchmark interest rate.

In Europe, London's FTSE was off 0.1%, Germany's DAX declined 0.8% and France's CAC fell 0.5%.

In Asia, Japan's Nikkei 225 dropped 1.6% following a national holiday Tuesday. Hong Kong's Hang Seng rose 0.1% and China's Shanghai Composite edged up 0.1%.

TickerSecurityLastChangeChange %
I:DJIDOW JONES AVERAGES35813.8+194.55+0.55%
SP500S&P 5004690.7+7.76+0.17%
I:COMPNASDAQ COMPOSITE INDEX15775.138332-79.62-0.50%

Wall Street closed out a wobbly day of trading, as gains in banks and energy companies tempered losses elsewhere in the market. The S&P 500 managed to rise 0.2% to 4,690.70 after wavering between small gains and losses for much of the day.

The Dow Jones Industrial Average rose 0.5% to 35,813.80, while the Nasdaq composite closed 0.5% lower, at 15,775.14. 

The price of U.S. crude oil rose 2.3% and wholesale gasoline rose 3.4% on Tuesday after President Biden ordered 50 million barrels of oil released from the nation’s strategic reserve to help bring down energy costs. The move was made in concert with other big oil-consuming nations, including Japan.

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Currently in energy trading, benchmark U.S. crude is lower by 23 cents to $78.27 a barrel. Brent crude, the international standard, slipped 39 cents to $81.92 a barrel.

The Associated Press contributed to this report.

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