Proactive Investors - 10.22am: Nasdaq slips at the open, but S&P 500 and Dow Jones higher
The Nasdaq Composite slipped on Thursday’s opening bell, while the S&P 500 and Dow Jones enjoyed gains following the release of a heap of economic data.
Retail sales slipped 0.8% in January, against analysts' expectations of a 0.1% contraction, reviving hopes that the Federal Reserve could soon begin base rate cuts.
“Due to a string of strong economic reports, the Fed seemingly felt confident enough to keep rates elevated in hopes of further bringing down inflation,” eToro analyst Bret Kenwell explained.
“That argument strengthened with this week’s inflation report, but the weaker-than-expected retail sales data for January may have investors wondering how long the Fed can really wait before cutting rates.”
Some played down the figures though, arguing economic woes were unlikely to be as bad as the data suggested due to the likes of storms impacting trading over the winter.
Jobless claims figures, despite having been expected to creep up, revealed a decline in the number of people on benefits in early February, meanwhile.
The Nasdaq dipped 9 points to 15,849 on the news, with the S&P 500 ticking up 13 points to 5,013 and the Dow Jones adding 208 points to reach 38,632.
7.04am: Stocks called higher at the open
The S&P 500 was called higher in the 5,000 points region ahead of Thursday’s opening bell, as analysts awaited a host of data on the likes of retail sales and industrial production.
Futures had the S&P 500 opening 0.1% higher at 5,024, with the Dow Jones and Nasdaq being called marginally higher at 38,535 and 17,900 respectively.
Retail sales, industrial production, jobless claims, and manufacturing indices from Philadelphia and New York, are all scheduled for release on Thursday.
According to City Index analyst Fawad Razaqzadal, markets will want to see figures weakening in the hopes base rate cuts come sooner rather than later.
Indeed, consensus is for retail sales, alongside New York and Philadelphia manufacturing, to decline, while jobless claims are expected to tick up slightly.
On the equities side, Deere & Co, Applied Materials Inc (NASDAQ:AMAT, ETR:AP2), Coinbase Global Inc (NASDAQ:COIN), Liberty Global (NASDAQ:LBTYA) Ltd and Trade Desk Inc (NASDAQ:TTD) are all due to report.