US stock futures fell modestly on Thursday, as the recent stock-price rally paused for breath, ahead of a policy decision from the European Central Bank and a new batch of US unemployment data.
After a round of exceptional gains for equities, investors will now turn their attention to Frankfurt, where the ECB is anticipated to boost an already massive monetary stimulus plan, and also to Washington, where unemployment data will offer a status on the US jobs market.
A drop in the number of people receiving unemployment benefits, or continuing claims, could suggest that people are being rehired.
Ahead, today's economic calendar includes; the ECB's policy decision at 7:45am EST, followed by Weekly Jobless Claims, International Trade for April and Nonfarm Productivity for the first quarter at 8:30am EST.
Earnings reports are expected today from; Broadcom (AVGO), Slack (WORK), DocuSign (DOCU), Ciena (CIEN), Gap (GPS), J.M. Sucker (SJM) and MongoDB (MDB).
TODAY'S TOP HEADLINES
US: New Charges In Floyd Killing Draw Protester Cheers. (The WSJ)
Minnesota’s attorney general added an upgraded charge of second-degree murder against one former police officer and charged three others in the death of George Floyd, in a fast-moving investigation of the killing that has sparked nationwide protests.
ECB: European Central Bank Ramps Up Its Pandemic Bond Buying To 1.35 Trillion Euros. (CNBC)
The European Central Bank (ECB) announced Thursday that it will increase its Pandemic Emergency Purchase Programme by 600 billion euros ($672 billion), as it attempts to bolster the region’s economy following the coronavirus crisis.
Today's Economical Announcements.
08:30AM - ★★★ - Weekly Jobless Claims (Previous: 2.123M)
08:30AM - ★★☆ - Exports (Previous: 187.80B)
08:30AM - ★★☆ - Imports (Previous: 232.20B)
08:30AM - ★★☆ - Nonfarm Productivity (Q1) (Previous: 1.2%)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
J.M. Smucker (SJM): [EARNINGS] Reported quarterly earnings of $2.57 per share, beating the consensus estimate of $2.29 a share. Revenue also beat forecasts, driven by increased consumer demand resulting from the Covid-19 pandemic. Smucker did forecast a 1% to 2% decline in overall sales for fiscal 2021, owing to weakness in its “away from home” business.
Navistar (NAV): [EARNINGS] Reported a loss of 38 cents per share for its latest quarter, 3 cents a share smaller than analysts were anticipating. Revenue came in ahead of Wall Street estimates, with Navistar predicting a “gradual” recovery for its business.
Tiffany (TIF): [NEWS] LVMH is exploring ways to renegotiate its $16.2 billion acquisition of its U.S. rival, according to a Reuters report. The deal was announced in November but has yet to close, and the pandemic and social unrest have weighed on Tiffany’s results since that time.
Michaels Cos. (MIK): [EARNINGS] Reported a quarterly loss of 43 cents per share, compared to analysts’ expectations of a 14 cents per share profit. Revenue was also well below estimates, with same-store sales falling 27.6%. The company said pandemic-related store closures hurt its results, but said it is seeing encouraging trends as its stores reopen.
Simon Property Group (SPG): [NEWS] Is suing apparel retailer Gap (GPS) over nearly $66 million in unpaid rent, according to online real estate publication The Real Deal. Gap is the largest tenant for the nation’s largest mall operator.
Costco (COST): [NEWS] Reported a 5.4% increase in May comparable-store sales, compared to FactSet’s estimate of a 0.3% decline. The warehouse retailer also saw e-commerce sales more than double compared to a year earlier.
Cloudera (CLDR): [EARNINGS] Reported a quarterly profit of 5 cents per share, beating the consensus estimate of a breakeven quarter. The cloud computing company’s revenue topped expectations as well. Cloudera gave weaker-than-expected current-quarter revenue guidance and that the impact of Covid-19 will peak in the second and third quarters and moderate in the fourth quarter.
ZoomInfo Technologies (ZI): [IPO] Debuts today on the Nasdaq after the business intelligence platform’s initial public offering priced at $21 per share, above the expected range and valuing the company at more than $8 billion.
Ciena (CIEN): [EARNINGS] Earned an adjusted 76 cents per share for its second quarter, well above the 49 cents a share consensus estimate. Revenue was also above Wall Street forecasts, and Ciena said it has sufficient resources to weather the pandemic.
FedEx (FDX): [NEWS] Is adding surcharges to some U.S. shipments, following a similar move by rival United Parcel Service (UPS). The move is designed to manage rising costs and a surge in package shipments amid the coronavirus pandemic.
Carnival (CCL): [NEWS] Extended the suspension of some voyages of its Princess Cruises brand that travel to Australia, Canada, and Taiwan. Many cruise ports around the world remain shut due to the Covid-19 pandemic.
Fossil (FOSL): [EARNINGS] Matched estimates with a quarterly loss of $1.51 per share, though the luxury goods maker’s revenue exceeded estimates. The company anticipates that the pandemic will continue to pressure its sales throughout 2020.
GAINERS: VERI, SPR, AIR, CWK, RH, AOBC
DECLINERS: OSUR, TBIO, PPC
ZoomInfo Technologies (ZI) (Low: 19, High: 20) (Est. Vol: $867.8M)
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