Dow Futures Eye 400-Point Drop Amid Jobless Claims, PPI Reading

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Investors are weighing the possibility of tighter U.S. monetary policy

Following yesterday’s tumultuous session, spurred on by a red-hot inflation reading, stock futures are eyeing another drop on Thursday. Futures on the Dow Jones Industrial Average (DJIA) are headed for a more than 400-point decline, while Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) futures are also swimming in red ink.

Investors are sifting through even more economic data. The latest producer price index (PPI) report was released this morning, showing an 11.3% jump in wholesale prices for June. Meanwhile, weekly U.S. jobless claims rose to their highest level since November over the Fourth of July holiday week, rising by 9,000 to 244,000, as more companies invoke layoffs in fear of another recession. 

Continue reading for more on today’s market, including:

  • The petroleum stock that could soon rally.
  • A look at this bank name ahead of tomorrow’s earnings report.
  • Plus, 3 of today’s biggest quarterly reports.

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 883,520 million call contracts and 647,527 put contracts traded on Wednesday. The single-session equity put/call ratio rose to 0.73, and the 21-day moving average rose to 0.66.
  2. JPMorgan Chase & Co (NYSE:JPM) stock is tumbling in premarket trading,  following the banking giant’s second-quarter confessional trip. Specifically, JPMorgan Chase reported quarterly profits of $2.76 per share — missing analysts estimates — and temporarily paused share buybacks, with CEO Jamie Dimon noting a number of headwinds the global economy is facing. JPM was last seen 3.2% lower, adding to its 29.3% year-to-date deficit.
  3. Shares of JPM’s sector peer Morgan Stanley (NYSE:MS) are marginally lower ahead of Wall Street’s open, last seen down 0.5% after the financial institution reported second-quarter earnings and revenue that fell short of forecasts, thanks to slowing investment banking activity. Keeping today’s losses in check, however, were strong results in equity and fixed income. In 2022, MS is 23.6% lower.
  4. Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) also chimed in with earnings today. The chipmaker reported second-quarter earnings and revenue that beat Wall Street’s expectations and raised its revenue forecast for the year, with results bolstered by strong demand for automotive and IoT chips. In response, TSM was last seen 1.9% higher in electronic trading, though it remains 34.4% lower year-over-year.
  5. In addition to jobless claims data, the final demand producer price index (PPI) for June is on today’s docket.

Markets in Asia, Europe Stumble Following U.S. CPI Reading

Markets in Asia mostly slipped today, as traders unpacked the U.S. inflation report and considered how aggressive the U.S. Federal Reserve will be in response with interest rate hikes. Japan’s Nikkei was the only winner with a 0.6% rise. Meanwhile, the Shanghai Composite in China fell 0.08%, while Hong Kong’s Hang Seng and the South Korean Kospi dropped 0.2% and 0.3%, respectively.

European markets are all falling below 1% midday, with the stateside CPI reading still in focus. Elsewhere, the European Commission is set to announce new economic forecasts. London’s FTSE 100 is down 1.1%, while the French CAC 40 and German DAX both shed 1.5%.