Former Citigroup chief economist Bill Lee joins ‘Lou Dobbs Tonight’ with analysis.
US stock futures traded lower ahead of Thursday’s session on Wall Street.
Nasdaq futures are down 1.1%, while the Dow is down 0.1%.
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Investors will see their first look at growth in the fourth quarter. The GDP report expects the US economy to grow at a seasonally adjusted annual rate of 4.0%, compared to a record rate of 33.4% in the third quarter.
At the same time, the Department of Labor will report on new claims for unemployment benefits for last week. Look for a decrease from 25,000 to 875,000. Continued claims, which track the total number of unemployed workers claiming benefits, are expected to remain stable at 5,054 million.
Finally, the Census Bureau is expected to say that sales of new single-family homes rose by 1.9% in December to a seasonally adjusted annual rate of 865,000.
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In terms of earnings figures, Comcast, Northrop Grumman, McDonald’s, Altria Group, American Airlines, Southwest Airlines and Mastercard are expected to deliver a strong flow of corporate results, with all reporting before the opening bell.
In Europe, the London FTSE fell by 1.0%, the German DAX by 1.1% and the French CAC by 0.3%.
In Asia, Japan’s benchmark, the Nikkei 225, fell 1.5%, Hong Kong’s Hang Seng by 2.6% and China’s Shanghai Composite by 1.9%.
The small majority held by Democrats in the Senate has raised doubts about how quickly the economy will gain new support after President Biden proposed a $ 1.9 billion COVID relief package. The plan can also be reduced.
The Federal Reserve said on Wednesday it would maintain its low interest rate policy, but also announced a sobering assessment of the gradual recovery ahead.
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On Wall Street, a sell-off in technology companies caused shares to tumble in a reversal of the recent move from the market to record highs.
The S&P 500 fell 2.6% to 3,750.77. The Dow lost 2%, to 30,303.17. The Nasdaq slipped 2.6% to 13,270.60. The Russell 2000 index of smaller companies gave up 1.9% to 2,108.70.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| Ek: DJI | DOW JONES AVERAGE | 30303.17 | -633.87 | -2.05% |
| SP500 | S&P 500 | 3750,77 | -98.85 | -2.57% |
| I: COMP | NASDAQ COMPOSITION INDEX | 13270.597569 | -355.47 | -2.61% |
Facebook, Netflix and Google’s parent company Alphabet led the setback, which began early in the day when investors magnified the company’s latest earnings reports. The market’s move accelerated towards the end of the day.
Traders were also focused on the notable boom in GameStop, a money-losing video game vendor that has become the focus of a battle between small investors offering it higher and large hedge funds betting on it. Shares in GameStop hit $ 500 a share on the stock market on Thursday morning.
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The volatile trade attracts the attention of officials in the highest levels of government. The White House said Biden’s government, including the Treasury Department, was monitoring the situation.
Boeing fell 4% after the aircraft manufacturer recorded its largest annual loss in the company’s history, mostly due to the base of Boeing’s 737 MAX fleet.
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Apple’s revenue rose 21% to $ 111.4 billion in the first quarter, reflecting the first full sales figures for the iPhone 12 since its October 23 release. Total revenue surpasses forecasts on Wall Street, where analysts estimate sales of $ 103.28 billion, and were the first $ 100 billion quarter in Apple’s history.
Facebook Inc. gained record revenue and profit in the fourth quarter, as online holiday shopping and greater use of the company’s platforms caused a boom in its advertising industry during the pandemic.
Tesla made its first profitable year after the sixth consecutive quarter of profits
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In energy trading, the standard U.S. crude oil lost 15 cents to $ 52.70 a barrel of electronic trading on the New York Mercantile Exchange. It picked up 24 cents to $ 52.85 a barrel on Wednesday. Brent crude, the international standard, fell 7 cents to $ 55.74 a barrel.
Associated Press contributed to this article.