U.S. stock futures inched lower Thursday on the heels of
declines in Europe.
S&P 500 futures fell three points, or 0.1%, to 2120. E-mini
Dow futures lost 20 points, or 0.1%, to 18235. E-mini Nasdaq-100
futures slipped 11 points, or 0.2%, to 4495. Changes in stock
futures don't always accurately predict moves in the stock market
after the opening bell.
European stocks were mostly lower, adding to the negative tone.
Data showed the eurozone's economy slowed for the second straight
month in May, according to surveys of purchasing managers.
Germany's DAX fell 0.5% and France's CAC-40 fell 0.3%.
In U.S. economic news, jobless claims in the most recent week
are expected to rise to 271,000 from 264,000 in the prior period,
according to economists surveyed by The Wall Street Journal. Later
in the morning, readings on manufacturing and home sales are also
due.
Investors are examining economic data to gauge when the Federal
Reserve may raise short-term rates, which have been held near zero
since December 2008. Fed officials signaled that soft economic
growth at the start of the year has reduced the likelihood they
would raise interest rates in June, according to minutes from the
Fed's April meeting released Wednesday.
"They've been very explicit," said Brad McMillan, chief
investment officer for Commonwealth Financial Network, which
manages about $97 billion. "They need to see inflation, they need
to see job growth, and they need to see wage growth," he added.
Signs of sustained wage growth are especially important to the Fed,
he said, because it could spur consumer spending and drive economic
growth.
"A lot of the models out there...require the consumer to start
stepping up here for growth to pick up," said McMillan. "We're just
not seeing that yet," he added.
Stocks ended slightly lower Wednesday, with the Dow slipping
0.1% to 18285.40. The S&P 500 lost 0.1% to 2125.85.
Still, major indexes are hovering just below all-time highs hit
earlier this week. The Dow is 0.1% below its record close of
18312.39, set Tuesday. The S&P 500 is 0.2% away from its
closing high of 2129.20 from Monday.
In commodity markets, gold futures fell 0.1% to $1207.50 an
ounce. Crude-oil futures rose 1% to $59.55 a barrel.
The yield on the 10-year Treasury note inched down to 2.233%
from 2.250% on Wednesday. Yields fall as prices rise.
In corporate news, CVS Health Corp. has agreed to buy
pharmacy-benefits provider Omnicare Inc. CVS shares rose 1.7%
premarket and those of Omnicare gained 1.5%.
Write to Saumya Vaishampayan at saumya.vaishampayan@wsj.com
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