US STOCKS-S&P 500, Dow headed lower a day after Fed hints at ‘taper talk’

Futures signaled a lower open for the Dow and the S&P 500 on Thursday following signs the Federal Reserve policymakers discussed tapering of bond purchases last month, while jobless claims data showed an improving labor market.

Leading losses among the 30 blue-chip Dow components in premarket trading was Cisco Systems Inc, down 5.4%, after the network gear maker cautioned that supply chain issues will linger through the end of 2021 and forecast its current-quarter profit below estimates.

The number of Americans filing for new claims for unemployment benefits fell to 444,000 in the week ended May 15, down for the third straight time to its lowest since a pandemic-led recession.

Wall Street’s main indexes fell for the third consecutive session on Wednesday after minutes from Fed’s meeting last month indicated many policymakers thought it would be appropriate to discuss easing crisis-era support in upcoming meetings if the strong economic momentum is sustained.

However, many analysts viewed the statement as old news as economic data since then has showed an unexpected slowdown in the labor market, fanning inflation worries.

“Unprecedented stimulus, supply chain imbalances, and prospects for a record tight U.S. labor market are creating high uncertainty about the inflation outlook,” said Linda Duessel, senior strategist at Federated Hermes.

Signs of rising inflation have increased bets that the Federal Reserve may tighten its policy soon, hitting rate-sensitive growth stocks that set the tech-heavy Nasdaq on track for its fifth consecutive weekly drop.

Bitcoin regained some lost ground to trade near $40,000, a day after a brutal selloff. Crypto-exchange operator Coinbase Global, miners Riot Blockchain and Marathon Digital Holdings rebounded between 2.7% and 7.3% in sympathy with the digital coin.

At 8:35 a.m. ET, Dow e-minis were down 87 points, or 0.26%, S&P 500 e-minis were down 4 points, or 0.1%, and Nasdaq 100 e-minis were up 11.75 points, or 0.09%.

Kohl’s Corp raised its forecast for 2021 sales, as the department store operator bets on a shopping boom but the outlook fell short of analysts’ estimates, sending its shares down 6.2%.

Ralph Lauren Corp dropped 3.5% after it forecast full-year sales below analysts’ estimates.


RSS Latest Press Release

  • Confort Prestige | Climatisation & Chauffage Announces HVAC Services For Improved Energy Efficiency
    TERREBONNE, QUEBEC- NOVEMBER 14, 2021- Premier heating and cooling company Confort Prestige is excited to share HVAC solutions with domestic customers in the Terrebonne area. These services aim to save customers money on their heating and cooling expenses throughout the year.   Since its debut, Confort Prestige has been committed to customer service. This starts […]
  • Hundreds of Car and Truck Parts Available from Salvage Specialist
    Morganville, NJ – When it comes to finding an auto part for a foreign or domestic vehicle, Trilenium Auto Salvage usually has the answer.   The Morganville, NJ salvage specialist has hundreds, if not thousands, of parts and components at its Tennent Rd premises available.   Trilenium Auto Salvage is one of the busiest salvage specialists […]
  • Flowsent Weed Delivery Offers the Fastest Weed Delivery Service in the Bay Area
    Bay Area, CA - As it becomes easier to get cannabis in different stores and online, weed delivery in Oakland, San Francisco, and other Bay Area cities are becoming more common. People are looking for the easiest way to get their hands on high-quality, safe cannabis, and nothing beats direct to your door.    Many […]
  • Cannamazoo Now Offering the Top Cannabis Concentrates in Michigan
    What are Cannabis Concentrates, Oils, and Extracts?   Kalamazoo, MI - You may be familiar with recreational cannabis in its usual form, but have you ever tried extracts, oils, and concentrates? Each of these forms offers unique effects and benefits that smoking cannabis flowers can't provide. Simple dosing, cleaner effects, and better taste are just […]