By Anora Mahmudova and Sara Sjolin, MarketWatch
Facebook shares drop premarket
U.S. stock futures edged lower on Thursday after a government
report showed the economy picked up pace in the second quarter,
while weekly jobless claims remained near the lowest level in
decades.
Futures for the Dow Jones Industrial Average slipped 45 points,
or 0.3%, to 17,639, while S&P 500 index futures fell 6 points,
or 0.3%, to 2,095. Nasdaq 100 index futures fell 5 points, or 0.1%,
to 4,560.
Overall, data on gross domestic product was better than
expected, considering the first-quarter number was revised upward.
The GDP numbers are likely to influence the Federal Reserve's
decision on the timing of the first rate hike, according to
analysts.
"The US economy bounced back in the second quarter as expected
and revisions show that it expanded in the first quarter..., said
Joseph Lake, global economist at The Economist Intelligence
Unit.
See: U.S. GDP report puts Fed on track for September rate hike
(http://www.marketwatch.com/story/us-gdp-report-puts-fed-on-track-for-september-rate-hike-2015-07-30).
Confirmation of a "decent first half to the year for the U.S.
economy means that the Fed is on track to lift the federal-funds
rate in September," Lake said.
GDP data: The U.S. economy expanded at an annualized 2.3% rate
in the second quarter, while first quarter growth was revised up
from negative 0.2% to 0.6%. Growth was led by consumer spending on
big-ticket items such as new cars as well as home construction, the
government said Thursday.
Meanwhile, the number of people who applied for U.S.
unemployment benefits rose by 12,000 to 267,000 in week ended July
25, the government said Thursday.
Read:What the huge change to how GDP is calculated means for
U.S. economy
(http://www.marketwatch.com/story/here-comes-the-big-fix-to-gdp-what-it-says-about-the-us-economy-2015-07-29)
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), although action
was choppy immediately after the Fed decision and statement. The
dollar rose on the expectations of a 2015 rate hike, and the ICE
dollar index continued its ascent on Thursday
(http://www.marketwatch.com/story/dollar-rises-against-yen-euro-after-fomc-2015-07-30-11033421)
as well.
Earnings: Reporting ahead of the bell, cable-TV provider Time
Warner Cable Inc.(TWC) reported a 19% drop in adjusted
second-quarter profit, missing analyst expectations.
Colgate-Palmolive Co.(CL) shares rose 0.8% after the
consumer-products company reported earnings that matched forecasts
(http://www.marketwatch.com/story/colgate-palmolive-profit-matches-estimates-sales-slightly-short-2015-07-30).
Another consumer-goods company Procter & Gamble Co. (PG)
slipped 0.2% after its fourth-quarter revenue slightly missed
expectations
(http://www.marketwatch.com/story/procter-gamble-beats-profit-expectations-but-provides-downbeat-outlook-2015-07-30).
ConocoPhillips(COP) climbed 2.1% after the oil and gas explorer
said it's on track to achieve the higher end of its 2015 production
target
(http://www.marketwatch.com/story/conocophillips-cuts-capex-plan-as-it-posts-loss-2015-07-30).
Valero Energy Corp.(VLO) is 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 1.4%
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) plunged 14% ahead of the open after
the supermarket chain on Wednesday posted earnings that slightly
missed forecasts.
U.S.-listed shares of Nokia Corp.(NOK) jumped 5.9% 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).
U.S.-listed shares of Anheuser Busch InBev NV (ABI.BT) slumped
5% ahead of the bell after the brewer said profit fell in the
second quarter
(http://www.marketwatch.com/story/ab-inbev-profit-falls-on-us-europe-weakness-2015-07-30),
as weakness in the U.S. and Europe weighed on sales volume.
Shares of Synergy Pharmaceuticals Inc.(SGYP) soared 25% after
the drug maker said test results were positive for its plecanatide
treatment for patients with chronic idiopathic constipation.
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 mixed, with the Stoxx Europe 600 index
inching higher on the back of a round of well-received earnings
reports (http://www.marketwatch.com/storyno-meta-for-guid).
Gold (http://www.marketwatch.com/storyno-meta-for-guid) declined
to trade around a 5 1/2 -year low, while crude-oil futures rose
0.6%.
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