By Sara Sjolin, MarketWatch
Whole Foods slides more than 10% after reporting earnings
U.S. stock-index futures recovered some of the sharp losses in
early morning trading but still pointed to a weak opening on
Thursday after a slight increase in weekly jobless claims.
Global equity markets suffered sharp declines following a jump
in European bond yields, but fears receded and indexes pared
losses.
Stock futures saw some pressure after weekly jobless-claims
data, which showed layoffs remain at 15-year lows. Investors watch
jobless claims as a precursor for the highly anticipated
nonfarm-payrolls report due on Friday.
Futures for the Dow Jones Industrial Average (YMM5) fell 31
points, or 0.2%, to 17,746, while those for the S&P 500 index
(ESM5) were off 3.6 points at 2,070.60. Futures for the Nasdaq-100
index (NQM5) were off 8 points, or 0.2%, to 4,365.00.
"It's not just U.S. futures where we're seeing weakness, we're
seeing it across the board," said Craig Erlam, senior market
analyst at Oanda. "The move is being driven by movements in
eurozone bond markets, where the Bund has taken another heavy hit
[...] This has spread to the wider markets and indexes are being
battered as a result."
The yield on 10-year German Bunds rose 6 basis points to 0.65%
on Thursday.
"It's been suggested that the change in the [eurozone] inflation
outlook has been responsible for the weakness in bonds over the
past week, with higher oil prices seen providing further upward
pressure," Erlam said.
Data: The number of people applying for U.S. unemployment
benefits remains near a 15-year low, rising a scant 3,000 to
265,000 in the seven days stretching from April 26 to May 2. That
was well below economists' forecast.
The data come a day ahead of the top-tier nonfarm-payrolls
report, which is closely watched by the Fed to assess the best time
for a first rate hike. Payrolls were very disappointing in March,
with only 126,000 jobs added to the economy, but forecasts are for
a pickup to 233,000 in April.
Also on tap, consumer credit numbers for March are due at 3 p.m.
Eastern.
Earnings: Reporting ahead of the bell, Priceline(PCLN) posted
better-than-expected first-quarter profit, but gave a soft outlook
for the current quarter. Shares were off 3% in premarket trade.
Alibaba (BABA) said revenue rose 45% during its fourth fiscal
quarter
(http://www.marketwatch.com/story/seaworld-loss-narrows-sales-beat-estimates-2015-05-07),
helping send the shares up 10% premarket.
SeaWorld Entertainment Inc. (SEAS), which is still struggling
with an image problem after the documentary "Blackfish", said its
loss narrowed in the first quarter
(http://www.marketwatch.com/story/seaworld-loss-narrows-sales-beat-estimates-2015-05-07),
while sales beat estimates. The stock fell 2.5% premarket.
Molson Coors Brewing Co.(TAP.NV.T) rose 2.9% premarket after the
brewer posted earnings that slightly topped forecasts.
And after the bell, CBS (CBS) and Nvidia Corp.(NVDA) are slated
to report.
Movers and shakers: Shares of Zynga Inc.(ZNGA) gained 5.3% ahead
of the bell after the online game maker late Wednesday posted
better-than-expected first-quarter earnings
(http://www.marketwatch.com/story/zynga-stock-climbs-on-strong-quarter-job-cuts-2015-05-06)
and announced plans to cut 18% of its workforce.
Tesla Motors Inc.(TSLA) slid 3.5% premarket Thursday, shaking
off better-than-expected first-quarter results reported on
Wednesday.
Whole Foods Market Inc. (WFM) also reported after Wednesday's
closing bell, posting sales that fell short of forecasts. Shares
were down 13% premarket on Thursday.
Other markets: U.K. stocks moved sharply lower
(http://www.marketwatch.com/storyno-meta-for-guid) as investors
took a hands-off approach on the day of the highly anticipated
general election. Read: 7 things you need to know about the U.K.
election
(http://www.marketwatch.com/story/7-things-you-need-to-know-about-the-uk-election-2015-05-06)
(http://www.marketwatch.com/story/7-things-you-need-to-know-about-the-uk-election-2015-05-06)
(http://www.marketwatch.com/story/7-things-you-need-to-know-about-the-uk-election-2015-05-06)
Stocks in Asia closed sharply
(http://www.marketwatch.com/story/asia-stocks-fall-after-yellen-warning-2015-05-06-231033824)
lower following Federal Reserve Chairwoman Janet Yellen's warning
on stock valuation
(http://www.marketwatch.com/story/yellen-says-stock-valuations-are-quite-high-2015-05-06),
while European markets were mixed amid
(http://www.marketwatch.com/story/asia-stocks-fall-after-yellen-warning-2015-05-06-231033824)
weakness in the bond market.
Oil futures (CLM5) were weaker after two straight days of gains
(http://www.marketwatch.com/story/crude-rallies-again-with-price-of-wti-atop-61-2015-05-06),
while most metals were on the decline. The ICE dollar index (DXY)
was little changed.
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