Stock futures fall on fading stimulus hopes, global restrictions
Mnuchin: Will ‘regroup’ with Pelosi on Thursday for stimulus talks
Treasury Secretary Steven Mnuchin says he suspects Democrats don’t want to give President Trump a stimulus win right before the election.
Equity futures are trading to the downside as hopes lawmakers will agree on a new economic stimulus package before the presidential election faded.
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The major futures indexes are suggesting a decline of 0.9% when the Wall Street session begins.
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On Wednesday, Treasury Secretary Steven Mnuchin said he and congressional leaders were “far apart” on new aid for the struggling U.S. economy. Consumer spending, the main U.S. economic engine, weakened after earlier additional unemployment benefits expired.
Record daily infection figures in Germany, the Czech Republic and Italy added to fears on Thursday that Europe is running out of chances to control its latest coronavirus outbreak. France has set a 9 p.m. curfew for many of its biggest cities as governments across the continent take increasingly tough action.
Some UK cities may face tighter restrictions.
In the U.S., Investors will get the latest reading on the labor market with the weekly report on jobless claims. The Labor Department is expected to say the number of claims for unemployment benefits declined to 825,000 last week, down 15,000 from the previous week’s tally of 840,000.
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There will be two reports on manufacturing with the Philly Fed's October index of manufacturing activity for eastern Pennsylvania, southern Jersey and Delaware. The report's reading is expected to come in at 14, down a point from the prior month.
The New York Fed will deliver its Empire State Manufacturing Survey for October. Watch for a 2-point decline to a reading of 15 from 17 the prior month. A reading above zero means that more manufacturers say business conditions are improving rather than worsening.
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On the earnings calendar, results are due from Morgan Stanley, Charles Schwab and pharmaceutical wholesaler and retailer Walgreens Boots Alliance.
In Asia, the Nikkei 225 in Tokyo fell 0.5%, the Hang Seng in Hong Kong lost 2% and China's Shanghai Composite Index fell 0.3%.
In Europe, London's FTSE is down 2.4%, Germany's DAX fell 3.1% and France's CAC declined 2.5%.
In the Wednesday Wall Street session, the S&P 500 fell 0.7% to 3,488.67. The Dow Jones Industrial Average lost 0.6% to 28,514. The Nasdaq composite slid 0.8% to 11,768.73.
|I:DJI||DOW JONES AVERAGES||28514||-165.81||-0.58%|
|I:COMP||NASDAQ COMPOSITE INDEX||11768.728778||-95.17||-0.80%|
Major U.S. companies begin reporting quarterly earnings this week.
Bank of America sank 5.3% after its revenue fell short of analysts’ forecast. Wells Fargo dropped 6% after its earnings were lower than Wall Street expected.
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In energy markets, benchmark U.S. crude dropped 59 cents to $40.45 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used to price international oils, declined 56 cents to $42.76 per barrel in London.
The Associated Press contributed to this article.
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