4:05pm: US equities end mixed session
US stocks closed a mixed session on concerns about the Federal Reserve reversing course on its stimulus program.
On the day, the DJIA fell 68 points, or 0.19%, to 34,894 for its third-straight session loss.
But the S&P 500 and the tech-heavy Nasdaq managed to make it into the green, rising 0.13% to 4,405 and 0.11% to 14,541, respectively.
12:05pm: US stocks began to recover from previous session’s loses
US markets were offered a reprieve on Thursday as last week’s unemployment claims fell to the lowest level since March 2020. The news, coupled with reports the Fed will indeed begin to taper stimulus programs (eventually) all pointed towards continued economic recovery.
By midday the Dow Jones Industrial Average continued to linger in the red down 17 points to 34,942. Meanwhile, The S&P 500 was holding in the green adding 15 points to hold at 4,415. The NASDAQ was on a similar trajectory up 71 points to 14,596 by lunch.
“US indices have begun the day with a rebound off their initial lows, which has in turn dragged European indices somewhat out of the red, although the post-Fed minutes caution does endure,” wrote Chris Beauchamp, Chief Market Analyst at IG in a market note on Thursday.
Beauchamp, noted the correction that global indices saw this week will “hardly dent the gains made so far this year.”
“However, for US and European markets, selloffs have been relatively brief all year, so a broader perspective would argue that investors are still content to be long risk, just not at the highs seen this week,” he added. “In addition, the continued deterioration in Asian markets is a real reason for concern, especially given how it has been ignored by markets on this side of the planet.”
11.20am: Proactive North America headlines:
Logic shares 'undervalued' according to Zacks Small-Cap Research after 2Q revenue handily beats expectations
Vyant Bio (NASDAQ:VYNT) and Cyclica in a strategic collaboration to identify compounds to treat CDKL5 Deficiency Disorder
CleanSpark introduces smart residential microgrid with mobile app to Californians
Biocept says a study of its cerebrospinal fluid assay CNSide shows potential use for cancer treatment
Alpine 4 subsidiary Thermal Dynamics International wins a new $2.2M contract in Africa
BioHarvest Sciences unveils groundbreaking caNN (NASDAQ:NNBR)abis trichome structure
Plurilock Security secures order from California state healthcare agency for US$794,000
Fobi AI (TSX-V:FOBI, OTCQB:FOBIF) completes acquisition of wallet pass software firm Passcreator and launches new Smart Scan application
Fireweed Zinc applies for trading on the OTCQB market and Depository Trust Company eligibility in the US
NexTech AR integrates its 3D and AR technology with SNAP, Facebook, and Instagram
AyurcaNN (NASDAQ:NNBR) Holdings gains exposure to European investors through Frankfurt Stock Exchange listing
CO2 GRO aNN (NASDAQ:NNBR)ounces CO2 Delivery Solutions commercial feasibility in arid Arizona
Nomad Royalty (TSX:NSR) Company boosts royalty on producing Caserones copper mine in Chile
Western Magnesium selects Ohio county for first full-scale US deployment of its proprietary magnesium extraction technology
The Valens Company (TSX:VLNS, OTCQX:VLNCF) achieves significant step toward Quebec market entry
Goldseek says a new 5,000-meter drill program will extend high grade gold zones at Beschefer
Phyto Extractions submits application for dried caNN (NASDAQ:NNBR)abis flower sales license
Silver Range Resources (AIM:RRL, ASX:RRS) options prospective South Kitikmeot in Nunavut to Australian firm Virdis Mining and Minerals
Helix BioPharma appoints paediatric surgeon Dr. Krzysztof Saczek to its board of directors
Alkaline Fuel Cell Power provides milestones to commercialize its micro-combined heat and power system
Great Bear Resources (TSX-V:GBR) gets greenlight from Ministry to start phase II drill at Dixie project
Aurania intersects sediment-hosted copper mineralization at Tsenken N1 target in Lost Cities-Cutucu project
Xigem Technologies (CSE:XIGM, OTCQB:XIGMF) highlights trends created by rapidly transforming global economy amid pandemic
The Valens Company (TSX:VLNS, OTCQX:VLNCF) achieves significant step toward Quebec market entry
Gold Resource Corporation (NYSEMKT:GORO) curtails activity at Don David Gold mine as coronavirus cases climb
10am: US stocks start lower
US shares started in the red on Thursday as traders were jittery about potential tapering moves by the Federal Reserve and the spread of the COVID-19 delta variant.
The Dow Jones Industrial Average shed over 70 points at 34,890 shortly after the bell.
The broader based S&P 500 lost nearly nine points at 4,391.
The tech heavy Nasdaq index shed around 56 points at 14,469.
Hargreaves Lansdown PLC (LSE:HL.) said in a note: "The Delta variant of the virus is threatening the reopening of economies and frets over the impact on Chinese demand in particular are hitting hard."
In company news, amid yet more corporate earnings releases, tech giant Nvidia shares made gains after it reported a profit of $1.04 a share, beating estimates of $1.01 a share, on sales of $6.5 billion, above expectations for $6.3 billion.
Grocer Kohl’s also advance d 6.4% after it reported a profit of $2.48 a share, beating estimates of $1.21 a share, on sales of $4.5 billion, above expectations for $4 billion.
7.30am: US shares set to start lower
US benchmarks are poised to start lower on Thursday as investors continue to flee risk.
In futures trade this morning, the Dow Jones Industrial Average is off 295 points, or 0.85%, the S&P 500 index is down 34, or 0.77%, and futures for the tech laden Nasdaq benchmark are down over 89 points or 0.59%.
The closely watched minutes of the July Fed meeting didn't throw up any major surprises on Wednesday but was clear in its message that the bond-buying (stimulus measure) will indeed stop at some point.
Fawad Razaqzada, market analyst at ThinkMarkets.com noted that the "markets are throwing a mini taper tantrum" this morning with losses in equity markets set to continue.
"It looks like the market is responding two to major bearish catalysts," he said. "As you may recall from my note yesterday, commodities were already getting crushed on concerns the recovery was slowing down in both the US and China (the world’s largest economies), after a handful of disappointing macro numbers.
"Adding to those worries were uncertainty over Covid, as well as concerns over valuations and inflation. Then, investors were reminded about tapering after the FOMC’s last meeting minutes revealed Fed officials agreed they could start slowing the pace of bond purchases later this year."
On the corporate front, traders are awaiting results from Macy's, Estee Lauder, Applied Materials, among others.
Five other things to watch on Thursday:
Among companies reporting before the bell, Kohl's is estimated to report quarterly earnings at $1.16 per share on revenue of $3.99 billion.
Data on initial jobless claims for the latest week will be released at 8:30 am ET. Analysts expect US jobless claims to fall to 360,000 in the August 14 week compared to 375,000 in the prior week.
The Philadelphia Fed manufacturing index for August is also scheduled for release at 8:30am ET. The index is reportedly expected to rise to 25.0 in August from 21.9 in July.
Robinhood Markets Inc (NASDAQ:HOOD) has disclosed its earnings for the first time as a public company and shares slumped 9% overnight as the app developer warned trading activity was slowing. The company’s total net revenues surged 131% to $565 million in the second quarter, while reporting a net loss of $502 million, versus net income of $58 million in the year-ago period.
Goldman Sachs (NYSE:GS) Group said Thursday that it had agreed to buy European asset manager NN (NASDAQ:NNBR) Investment Partners from NN (NASDAQ:NNBR) Group NV for around €1.6 billion ($1.87 billion).