Wall Street Set To Open Broadly LowerJanuary 13, 2022
The weekly jobless claims, the U.S. trade deficit, factory orders, and service sector activity might be the highlights on Thursday.
U.S. non-farm payroll data is expected on Friday, which would give a further indication of how soon the central bank may raise rates.
Higher interest rates increase borrowing costs for businesses and consumers which can result in less spending.
Asian shares closed lower, while European shares are trading down.
Early signs from the U.S. Futures Index suggest that Wall Street might open broadly higher.
As of 7.10 am ET, the Dow futures were up 111.00 points, the S&P 500 futures were adding 4.50 points and the Nasdaq 100 futures were declining 48.50 points.
The U.S. major Indices finished lower on Wednesday. After reaching a new record intraday high, the Dow turned lower following the release of the Fed minutes, slumping 392.54 points or 1.1 percent to 36,407.11. The Nasdaq plunged 522.54 points or 3.3 percent to 15,100.17 and the S&P 500 tumbled 92.96 points or 1.9 percent to 4,700.58.
On the economic front, the International Trade in Goods and Services for November will be issued at 8.30 am ET. The consensus is for a deficit of $71.6 billion, while it was down $67.1 billion in the prior month.
The Labor Department’s Jobless Claims for the week will be published at 8.30 am ET. The consensus is for 205K, while it was up 198K in the prior week.
The Factory Orders for November will be released at 10.00 am ET. The consensus is for an increase of 1.3 percent, while it was up 1.0 percent in October.
The Institute for Supply Management’s Services Index for December is scheduled at 10.00 am ET. The consensus is for an increase of 67.0, while it was up 69.1 in the prior month.
The Energy Information Administration or EIA’s Natural Gas Report for the week is expected at 10.30 am ET. In the prior week, the gas stock was down 136 bcf.
The Fed Balance Sheet for the week is scheduled at 4.30 pm ET. In the prior week, the level was at $8.757 trillion.
Asian stocks fell sharply on Thursday. Chinese shares ended off their day’s lows after data showed activity in China’s services sector expanded at a faster pace in December.
China’s Shanghai Composite index dropped 9.10 points, or 0.25 percent, to 3,586.08 while Hong Kong’s Hang Seng index finished 0.72 percent higher at 23,072.86.
Japanese shares fell the most in six months. The Nikkei average plummeted 844.29 points, or 2.88 percent, to 28,487.87, marking its biggest drop since June. The broader Topix index fell 42.26 points, or 2.07 percent, to 1,997.01.
Australian markets posted their biggest drop since September 2020. The benchmark S&P/ASX 200 index slumped 207.50 points, or 2.74 percent, to 7,358.30 while the broader All Ordinaries index ended down 220.30 points, or 2.79 percent, at 7,679.30.
European shares are trading lower. Among the major indexes in the region, the CAC 40 Index of France is sliding 93.78 points or 1.26 percent. The German DAX is losing 181.93 points or 1.12 percent, the U.K. FTSE 100 Index is down 45.95 points or 0.60 percent.
The Swiss Market Index is sliding 129.03 points or 1.00 percent.
The Euro Stoxx 50 Index, which is a compilation of 50 blue chip stocks across the euro area, is down 1.34 percent.
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