Updated June 17, 2021 7:53 a.m. ET
Stock futures are ticking lower after the Federal Reserve signaled that the days of loose monetary policy will end a little earlier than last expected. Here’s what we’re going to watch before the opening bell on Thursday.
- Futures, which are linked to the S&P 500 index, were down 0.2%, suggesting that the broad US market will fall 0.5% one day after the closing price. Nasdaq 100 futures were down 0.3%, suggesting a bigger decline in technology stocks. Dow Jones Industrial Average futures ticked nearly 0.2% lower.
- The WSJ Dollar Index, which tracks the US currency against a basket of other currencies, gained nearly 0.4%. On Wednesday it rose 0.8%, the largest increase in more than a year. Gold fell the hardest in nearly six months on Thursday.
- New data showing the number of Americans who first applied for unemployment benefits in the week ending June 12 is due at 8:30 a.m. ET.
- Kroger’s profits are due prior to opening and Smith & Wesson will report when it closes.
Market movers in view
CureVac slumped more than 40% in pre-market trading after its experimental Covid-19 vaccine was 47% effective against the disease in an interim analysis of a large clinical trial.
- Honest’s shares were down 7.5% before trading. The consumer staples business posted losses in the first quarter, although sales increased over the period.
Jessica Alba, Honest Co.’s co-founder and chief creative officer, was posted outside the Nasdaq MarketSite for the company’s IPO on May 5, 2021.
Michael Nagle / Bloomberg News
- Bank stocks rose ahead of the opening bell after Federal Reserve officials signaled they would hike rates on loans by the end of 2023. Charles Schwab was up 1.2% and Wells Fargo was up 0.7%.
- Orphazyme shares are zigzagging again, down 10% pre-trading after rising more than 60% in Wednesday’s trading session. The Danish pharmaceutical company stated that it was not aware of any material changes in clinical development programs, financial position or operating results that would explain the recent price volatility or trading volume.
- Novavax shares rose 4.6% before the IPO, following declines in the previous three trading days. In a recent large clinical study, the company’s vaccine was reported to be 90.4% effective in preventing symptomatic disease in adults.
Midatech Pharma’s shares rose nearly 50% pre-market after the company said the data showed the potential of its technology to make long-acting injectable drugs.
- A drug from Viking Therapeutics for the treatment of a rare metabolic disorder has been shown to be safe and well tolerated in a phase 1 study, said the San Diego-based company on Thursday. The stocks rose more than 9% before it was placed on the market.
- The real estate sector, which focuses on companies that rent properties, is up 13% this quarter, more than double the 6.3% gain of the broader S&P 500 stock index.
- Enthusiasm for SPACs, especially green ones, has waned in recent months. Since late last year, stocks of green focus companies that announced takeovers but have not yet closed their deals have fallen an average of 24% in 90 days of the deal being announced; The shares of other SPACs have fallen by an average of 9%.
Chart of the day
- In updated forecasts released Wednesday, 13 out of 18 Fed officials said they expect short-term rates to hike by the end of 2023, up from seven who expected that result in March. In March, most of the expected hold rates remained stable through 2023.
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