By Sara Sjolin, MarketWatch
Facebook shares drop premarket
Wall Street was set to open slightly lower on Thursday, with
stock futures dipping into the red ahead of closely watched
second-quarter growth data that could impact the timing of the
first Federal Reserve rate hike.
Futures for the Dow Jones Industrial Average slipped 33 points,
or 0.2%, to 17,649, while those for the S&P 500 index fell 4.50
points, or 0.2%, to 2,097. Futures for the Nasdaq 100 index lost
4.25 points, or 0.1%, to 4,560.75.
GDP data: The key event on Thursday is the release of
second-quarter gross domestic product data due at 8:30 a.m. Eastern
Time. Economists polled by MarketWatch forecast the economy grew by
2.8% in the quarter, staging a rebound after a 0.2% contraction in
the first three months of the year.
"Today's 2Q GDP update will weigh heavily on whether the Fed
hikes in September or if it will again delay," said John
Kicklighter, chief strategist at DailyFX, in a note.
The Fed on Wednesday kept rates on hold as expected, but hinted
strongly that it's ready to start tightening monetary policy in the
fall
(http://www.marketwatch.com/story/fed-will-raise-rates-in-september-2015-07-29),
depending on improvement in incoming data.
U.S. stocks closed higher on Wednesday
(http://www.marketwatch.com/storyno-meta-for-guid) after the Fed
decision, although action was choppy immediately after the release
of the report. The dollar rose on the expectations of a 2015 rate
hike, with the ICE dollar index continuing its ascent on Thursday
(http://www.marketwatch.com/story/dollar-rises-against-yen-euro-after-fomc-2015-07-30-11033421)
as well.
Also on the lineup are weekly jobless claims, due at 8:30 a.m.
Eastern. Forecasts are for a climb to 275,000 in the week ended
July 25, up from 255,000 in the week before, which was the lowest
level since November 1973
(http://www.marketwatch.com/story/us-jobless-claims-plunge-26000-to-255000-lowest-level-since-1973-2015-07-23).
Earnings: Reporting ahead of the bell, consumer-goods company
Procter & Gamble Co. (PG) is forecast to report earnings of 95
cents a share on revenue of $17.9 billion, according to analysts
surveyed by FactSet.
Cable-TV provider Time Warner Cable Inc.(TWC) is projected to
report second-quarter earnings of $1.80 a share, while oil and gas
explorer ConocoPhillips(COP) is forecast to earn 4 cents a share,
down from $1.61 a share a year ago.
Colgate-Palmolive Co.(CL) and Valero Energy Corp.(VLO) are also
slated to report premarket.
And after the market closes, earnings from game developer
Electronic Arts Inc.(EA), biotech company Amgen Inc.(AMGN) and
online networking site LinkedIn Corp.(LNKD) are on tap.
Movers & shakers: Shares of Facebook Inc.(FB) lost 2.4%
ahead of the bell after the social-media company late Wednesday
reported a drop in second-quarter earnings
(http://www.marketwatch.com/story/facebook-beats-profit-views-while-expenses-jump-2015-07-29-16485210).
Whole Foods Market Inc.(WFM) could also be active after the
supermarket chain on Wednesday posted earnings that slightly missed
forecasts.
U.S.-listed shares of Nokia Corp.(NOK) jumped 6.2% in premarket
trading after the Finnish telecom-equipment company reported
better-than-expected second-quarter profit
(http://www.marketwatch.com/story/nokia-beats-expectations-on-higher-software-sales-2015-07-30-14854044).
Other markets: Stock markets in Asia closed mixed
(http://www.marketwatch.com/storyno-meta-for-guid), with the
Shanghai Composite Index shaving off an earlier gain and ending
2.2% lower.
European stocks were also mixed, with the Stoxx Europe 600 index
inching higher on the back of a round of well-received earnings
reports.
Gold (http://www.marketwatch.com/storyno-meta-for-guid) declined
to trade around a five-and-a-half-year low, while crude-oil futures
rose 0.3%.
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