Dow slips as investors look ahead to Friday jobs report

US oil dips below $90

West Texas Intermediate crude futures, the US oil benchmark, fell below $90 per barrel on Thursday, sinking to its lowest level since February. Thursday’s decline builds on recent weakness for oil as recession fears weigh.

WTI last traded at $89.68 per barrel, for a decline of 1%. International benchmark Brent crude dipped 1.3% to $95.53 per barrel.

“A disappointing summer driving season in the US, as well as China, amid growth concerns has taken hold in the oil market,” Bart Melek, head of commodity strategy at TD Securities, said in a note Thursday.

“[T]he oil market should still find solid support as extremely elevated supply risk rewards remains in the market with the world eating away at what little is left of its spare capacity,” he added.

Coinbase surges on BlackRock partnership

People watch as the logo for Coinbase Global Inc, the biggest US cryptocurrency exchange, is displayed on the Nasdaq MarketSite jumbotron at Times Square in New York, US, April 14, 2021.

Shannon Stapleton | Reuters

Shares of Coinbase jumped more than 10% in premarket trading Thursday after BlackRock announced that it would partner with the cryptocurrency exchange to offer crypto trading to top clients.

The partnership will initially focus on bitcoin, BlackRock said. BlackRock is the largest asset manager in the world.

Carmen Reinicke

Weekly jobless claims increase slightly to 260,000

Weekly jobless claims ticked up 6,000 to 260,000 for the week ending July 30, according to a report from the Labor Department.

Stock futures remained largely flat after the report. Investors will now be waiting for the June nonfarm payrolls report scheduled for Friday.

Carmen Reinicke

Tesla higher ahead of potential stock split approval

Tesla cars line up to wait for an open charging bay on July 17, 2022 in Nephi, Utah. With more electric cars on the road, lack of charging infrastructure is becoming more of a problem for EV owners.

George Frey | Getty Images

Shares of Tesla ticked up more than 1% in premarket trading Thursday ahead of a potential approval on a 3-for-1 stock split. The company officially proposed the stock split in a proxy statement filed in June. There will be a vote on the split at Tesla’s annual shareholder meeting today.

Carmen Reinicke

Sunrun pops after earnings

Shares of Sunrun added more than 5% during premarket trading Thursday following the company’s second-quarter results.

The residential solar installer reported $584.6 million in revenue for the three-month period. Analysts surveyed by StreetAccount were expecting $501.5 million in revenue.

Sunrun said its total customer count jumped 21% year over year to 724,177.

Eli Lilly, Paramount and Restaurant Brands move on earnings releases

Multiple companies reported quarterly earnings Thursday before the bell, sending shares moving ahead of market open.

Eli Lilly missed estimates and shed nearly 4%. Paramount Global also slumped about 4% even though it reported better-than-expected results. Restaurant Brands posted an earnings beat and ticked up about 1%.

Here’s what other stocks made moves in premarket trading.

Carmen Reinicke

Alibaba jumps after earnings beat

Signage for Alibaba Group Holding Ltd. covers the front facade of the New York Stock Exchange November 11, 2015.

Brendan McDermid | Reuters

Shares of Alibaba rose as much as 7% in premarket trading after the company reported earnings that beat Wall Street’s expectations.

Even though the report was ahead of estimates, it marked the first quarterly release where Alibaba showed flat growth. The company faced a number of headwinds in the quarter due to Covid and the global economy.

Carmen Reinicke

Bank of England announces largest interest rate hike in 27 years

The Bank of England on Thursday hiked interest rates by half of a percentage point, the sixth consecutive increase and first bump of this size since 1997, in an effort to cool off inflation.

Inflation in the UK is also at a 40-year high, and is poised to continue to move higher. The bank now expects that headline inflation will peak around 13% in October, meaning its rate hikes will likely continue.

Carmen Reinicke

Another leg down in stocks is coming, Bernstein says

Bernstein strategists led by Sarah McCarthy said they expect the market to take another leg down in the short term.

“While longer term sentiment indicators are bearish enough to take a positive view on equities with a horizon of 12 months, in the short term we think the market is likely to have another leg down as we are just at the start of the earnings downgrade cycle , and we have not yet seen meaningful outflows from equity funds,” they said in a note to clients Thursday.

Those comments come as the market enjoys a sharp rebound from the mid-June lows. Since then, the S&P 500 is up 14.25%.

Stock futures are little changed after Wednesday’s monster rally

Traders work on the floor at the New York Stock Exchange (NYSE), New York, August 3, 2022.

Andrew Kelly | Reuters

US stock futures pointed to a muted open Thursday, as the market took a breather following a rally in the previous session. Futures tied to the Dow Jones Industrial Average rose less than 0.1%, along with S&P 500 and Nasdaq 100 futures.

fred imbert

European markets mutated; big Bank of England hike expected

European stocks were mutated on Thursday as uncertainty returned following gains in the previous session.

The pan-European Stoxx 600 was up 0.2% by mid-morning. Retail stocks were the standout performers, gaining 2.2%, while telecoms fell 0.5%.

The UK’s FTSE pulled back ahead of the Bank of England’s monetary policy decision later on Thursday. The central bank is widely expected to hike interest rates by 50 basis points, its largest single increase since 1995.

Alibaba’s Hong Kong shares gain 4% ahead of earnings

Alibaba is set to report fiscal first-quarter earnings before the market open and analysts expect the Chinese e-commerce giant to post its first revenue decline on record.

Alibaba is projected to post revenue of 203.19 billion yuan ($30 billion) for the June quarter, down 1.2% from a year ago, according to consensus forecasts from Refinitiv.

Alibaba has faced a number of headwinds, from a stricter regulatory environment in China to a resurgence of Covid in the world’s second-largest economy which led to lockdowns of major cities. Those factors have hit the Chinese economy, dampening ad budgets and consumer spending, which will likely weigh on Alibaba’s June quarter results.

Still, analysts expect the company to return to growth in the coming quarters. Alibaba’s Hong Kong-listed shares were more than 4% higher ahead of earnings.

— Arjun Kharpal

Jim Cramer says charts point to a rally in gold

CNBC’s Jim Cramer said now is a good time to buy gold as signs are pointing to a rally, according to analysis by commodity trader Larry Williams.

The “Mad Money” host explained Williams’ analysis by looking at the weekly action of gold since 2014 and data on small speculators’ positioning on gold from the Commodity Futures Trading Commission’s Commitments of Traders report.

Gold prices usually peak soon after small speculators get too bullish on the precious metal, and bottom out when small speculators are too bearish, according to Williams.

“The charts, as interpreted by the legendary Larry Williams, suggest that the general public’s giving up on gold en masse and he thinks that that makes it the perfect entry time to do some buying,” Cramer said.

— Abigail Ng, Krystal Hur

Here’s how to invest for yields to beat a bad year for stocks and bonds — according to the pros

Stocks are volatile, and bonds haven’t been doing better for much of this year, with US investment grade bonds plummeting in 2022.

But analysts have recently been bullish on income investing as yields start to creep up again.

Here are some ways that the pros suggest investors can position their portfolios for diversification and protection against market volatility as well as seek higher yields as inflation continues to rise. Pro subscribers can read the story here.

— Weizhen Tan

Fortinet shares fail

Fortinet shares slid more than 9% in extended trading after the cybersecurity firm reported its quarterly results, which included free cash flow of $283.5 million, compared to FactSet estimates of $337.2 million. Services revenue also missed estimates.

Other cybersecurity stocks moved lower too after hours. CrowdStrike edged lower by 1% and Palo Alto Networks lost more than 1%.

—Tanaya Macheel

Walmart begins layoffs, about a week after its profit warning

Walmart has started laying off corporate employees about a week after the retail giant slashed its profit outlook and warned about a pullback in consumer discretionary spending due to inflation. The company described the layoffs as a way to “better position the company for a strong future” in a statement to CNBC. Shares inch lower by less than 1% after hours.

—Tanaya Macheel

Lucid shares tumble nearly 12%

Shares of the electric luxury vehicle maker Lucid Group tumbled 11.7% in extended trading after the company cut its full-year production targets for a second time to 6,000. The original forecast was 20,000. The company also reported a quarterly loss of 33 cents per share.

—Tanaya Macheel

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