US stock futures edged lower ahead of a fresh batch of economic data on Thursday. Investors were cautious in the previous session, with the fallout from possible Israeli retaliation to an Iranian attack earlier this week weighing on sentiment. Elsewhere, Tesla’s ( NASDAQ:TSLA ) quarterly deliveries missed estimates, while Levi Strauss ( NYSE:LEVI ) said it was considering options for its underperforming Dockers brand.
- Futures are going down
U.S. stock futures fell on Thursday as investors eyed the release of the all-important jobs report later in the week and continued tensions in the Middle East.
By 03:33GMT (07:33GMT), Dow futures were down 111 points, or 0.3%, S&P 500 futures were down 16 points, or 0.3%, Nasdaq 100 futures were down 94 points, or 0.5%.
Key averages were subdued in the previous session, with traders opting to remain cautious as Israel considers a possible response to an aerial bombardment by Iran earlier in the week. The benchmark S&P 500 closed 0.79 points, or 0.01% higher, while the tech-heavy Nasdaq Composite added 15 points, or 0.1%, and the 30-share Dow Jones industrial average rose 40 points, or 0.1% .
U.S. Treasury yields, which typically move inversely with prices, rose after a stronger-than-expected private payrolls report.
- Jobless claims, US PMIs ahead
Markets will have a chance to analyze new weekly first-time jobless claims and data on services sector activity on Thursday.
The data is expected to set the stage for the crucial nonfarm payrolls report on Friday, which is expected to show the US economy added slightly more jobs in September.
Investors will likely use the bundle of indicators to assess the state of the US labor market and the broader economy ahead of the Federal Reserve’s upcoming policy meeting in November.
The central bank cut interest rates by 50 basis points last month, with officials saying they wanted to support job demand at a time when inflationary pressures are easing.
Policymakers also signaled the start of a broader easing cycle, although it remains uncertain whether the Fed will opt for another jumbo cut or a more traditional quarter-point cut next month.
- Tesla slips after disappointing quarterly deliveries
Tesla shares fell more than 3% on Wednesday after the electric vehicle (EV) giant reported disappointing third-quarter deliveries despite cutting prices and offering new incentives to woo customers.
Tesla delivered 462,890 cars in the July-September period, up 6.4 percent from a year earlier, but missing Wall Street expectations for 469,828 units, according to LSEG data cited by Reuters.
Chief Executive Elon Musk has said in the past that Tesla, which is under pressure from stiff competition and weak consumer demand for electric cars, will increase its annual deliveries from last year’s record high of 1.8 million. But at its current pace, the group will need to announce record deliveries in the fourth quarter to avoid seeing a plunge in deliveries for the full year.
Tesla shares had rallied in recent days as investors prepared for the October 10 unveiling of the company’s new robotaxi. Hopes are high that the event will signal the company’s shift in focus to autonomous driving with artificial intelligence. Earlier this year, Musk declared that Tesla had become “an artificial intelligence, robotics business.”
- Levi Strauss is considering selling Dockers
Levi Strauss said it had put its Dockers brand under review for a possible sale and cut its full-year revenue forecast for the entire group, sending its shares down sharply in extended trading hours.
In a statement, the San Francisco-based denim maker said it had made the decision to evaluate “strategic alternatives” for Dockers in order to address “areas in which we have underperformed.”
Since being introduced by Levi Strauss in 1986, Dockers has been making khaki garments that have become synonymous with business casual wear. But the sector has struggled recently, posting a 15% drop in net income year-on-year in the third quarter ended in August.
Levi Stauss also cut its full-year sales forecast, guiding for revenue growth of 1% compared with previous forecasts of 1% to 3%.
- Oil rises amid Middle East unrest
Oil prices rose on Thursday as escalating violence in the Middle East raised concerns that crude flows could be disrupted from this key export region.
By 03:34 GMT, Brent was up 1.2% at $74.81 a barrel, while U.S. crude futures (WTI) were trading 1.4% higher at $71.06 a barrel. barrel.
Traders are awaiting Israel’s response to Iran’s firing of more than 180 missiles into its territory, with analysts estimating that the country could target Iranian oil infrastructure.
Meanwhile, U.S. crude inventories rose 3.9 million barrels to 417 million barrels in the week ended Sept. 27, the Energy Information Administration said on Wednesday, compared with expectations for a 1.3 million drop. barrels.
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Reference;
Kanowsky, S. (2024) Futures lower, Tesla deliveries, Levi Strauss shares dip – what’s moving markets By Investing.com, Investing.com. Investing.com. Available at: https://www.investing.com/news/economy/futures-lower-tesla-deliveries-levi-strauss-shares-dip–whats-moving-markets-3646466 (Accessed: 3 October 2024).
