Stock Futures Eye Muted Slide on GDP Reading, Jobs Data

Initial jobless claims came in higher than expected

Deputy Editor
Jul 28, 2022 at 9:13 AM
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A promising update from the U.S. Federal Reserve helped stocks surge yesterday, but futures are stalling out heading into Thursday's session after the second-quarter gross domestic product (GDP) reading fell 0.9% for its second-straight decline, further signaling a looming recession. Additionally, initial jobless claims came in at 256,000 for the week ending July 23 -- a 5,000 decrease but still above the anticipated 249,000. Futures on the Dow Jones Industrial Average (DJIA) are eyeing a 58-point drop, while Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) futures are also looking to open slightly below their respective fair values, thanks to disappointing earnings from Facebook-parent Meta Platforms (META).

Continue reading for more on today's market, including:

  • The Big Tech giant brushing off an earnings blunder
  • Why this apparel stock could continue to crumble.
  • Plus, discount airliner's takeover battle concludes; why solar stocks are jumping; and HOG revs up after earnings beat.

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5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.26 million call contracts and 837,230 put contracts traded on Wednesday. The single-session equity put/call ratio fell to 0.66, and the 21-day moving average rose to 0.68.
  2. Hours after scrapping plans to merge with Frontier Group (ULCC), Spirit Airlines Incorporated (NYSE:SAVE) reached a deal to be bought by JetBlue Airways (JBLU) for $3.8 billion in cash, or $33.50 per share. The move comes after a drawn-out takeover battle, and helped SAVE add 4% in electronic trading. Year-to-date, Spirit Airlines stock is 11.2% higher.
  3. Shares of solar stocks are popping today, with Sunrun Inc (NASDAQ:RUN) and Sunnova Energy International Inc (NYSE:NOVA) boasting 11.4% and 15.6% premarket leads, respectively, after Democratic Senator Joe Manchin agreed to support a bill that would invest $369 billion in clean energy incentives. In 2022, RUN and NOVA are both sport deficits of slightly more than 30%.
  4. Harley-Davidson Inc (NYSE:HOG) is 5% higher ahead of the opening bell, after reporting top- and bottom-line beats for the second quarter. In addition, the motorcycle maker reaffirmed its prior full-year forecast. If today's gains hold, HOG will be on track for its fourth-consecutive winning week.
  5. Alongside day's jobs data, GDP data set to come out as well.

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Stateside Fed Update Boosts Markets in Asia

Asian markets were mostly higher today, following the Fed’s rate hike decision stateside. Hong Kong’s Hang Seng was the only loser, shedding 0.2%. The South Korean Kospi added 0.8%, with a boost from Samsung’s second-quarter earnings, while Japan’s Nikkei rose 0.4%, and China’s Shanghai Composite tacked on 0.2%.

European markets are struggling for direction, as investors unpack a flood of corporate earnings, including a disappointing second-quarter report from Barclays after a costly trading error. London’s FTSE 100 is down 0.2%, while the French CAC 40 rises 0.07%, and the German DAX sheds 0.1%. 

 

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