Dow Futures Leap As Energy Prices Ease, Debt Ceiling Deal Emerges; Jobless Claims In Focus

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Wall Street futures traded higher Thursday, while energy prices retreated from multi-year highs, as investors looked to a short-term fix in the U.S. debt ceiling saga and an easing of tensions between Washington and Beijing.

© TheStreet Dow Futures Leap As Energy Prices Ease, Debt Ceiling Deal Emerges; Jobless Claims In Focus

Republican Senator Mitch McConnell’s late Wednesday olive branch to Senate Democrats on the debt ceiling sparked the biggest single-day swing on Wall Street since February, with stocks powering higher amid speculation that at least one near-term risk may be taken off the table.

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White House Spokesperson Jen Paski said Wednesday that no formal plans have been received as yet, but McConnell has said he’ll support a specific, time-limited extension to the $28.4 trillion debt ceiling in order to allow Democrats time to pass a longer-term solution through the complicated process of reconciliation.

A bigger-than-expected increase in domestic crude stocks, which the Energy Department said rose by 2.3 million barrels last week, helped pull oil prices from their seven-year highs, while hints from Russian President Vladimir Putin on increased gas supplies to Europe clipped energy market prices on the Continent.

WTI futures for November delivery were marked $1.20 lower on the session at $76.24 each, while Brent contracts for December were down 88 cents to $80.20 per barrel.

Europe’s Stoxx 600, the regional benchmark, rose 1.3% as markets adjusted to falling energy prices and a possible breakthrough in debt ceiling talks, while Japan’s Nikkei 225 snapped an eight-day losing streak to close 0.54% higher at 27,678.21 points amid the potential thawing of U.S.-Sino relations.

President Joe Biden will meet China’s President Xi Jingping before the end of the year, administration officials said late Wednesday, setting up the first face-to-face talks between the two world leaders since last year’s election.

On Wall Street, futures contracts tied to the Dow Jones Industrial Average are indicating a 300 point opening bell gain ahead of weekly jobless claims data at 8:30 am Eastern time, while the broader S&P 500 is priced for a 40 point move to the downside . Nasdaq Composite futures, meanwhile, are set for a 175 point boost as benchmark 10-year note yields hold at 1.526% in overnight trading.

General Motors shares were a notable early-market mover, rising 1.6% after the largest U.S. automaker unveiled plans to double it annual revenue by the end of the decade.

AT&T shares, meanwhile, fell 1.6% as the stock went ‘ex-dividend’ and investors reacted to a Reuters report that linked its funding to the far-right media group OAN.

Costco Wholesale shares bumped higher, as well, after it posted a massive September sales boost that bodes well for the bulk discount retailer’s holiday season momentum.

Levi Strauss shares were also on the move, rising 4.3% after the causal apparel maker posted stronger-than-expected third quarter sales after the close of trading last night.

This article was originally published by TheStreet.

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