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02.09.2021 03:00 PM
The US stock market is stuck in place

Futures on US stock indices practically do not show any dynamics on Thursday in the first half of the day, as the markets are waiting for data on employment in the US. It will determine the attitude of the Federal Reserve System toward tightening monetary policy in the near future. S&P 500 futures rose 0.2% after closing on Wednesday. The yield on ten-year US Treasury bonds remained below 1.30%, and the US dollar only partially weakened against the euro and the British pound. Shares of energy and healthcare companies showed the largest growth in the Stoxx Europe 600.

As noted above, all attention is now focused on the US employment data, which will be released tomorrow afternoon. It will give an idea of the American economy and provide clarity on the consequences of a possible reduction in the Fed's monthly bond purchases by $ 120 billion. Investors' attention is also focused on the outbreak of the Delta coronavirus strain, which may affect the timing of the Fed's plans to reduce bond issuance.

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The food manufacturer Hormel reported an adjusted quarterly profit of 39 cents per share, which is in line with forecasts. It was also indicated that the revenue growth coincided with the estimates. However, the company gave a weaker-than-expected forecast for the end of the year, noting the impact of higher costs and expenses. Shares in the premarket fell by 3.5%.

Clothing retailer Lands' End reported an increase of just 6 cents per share and reported higher revenue than economists' forecasts. However, the company also reported that its profitability would decline in the second half of the fiscal year due to problems in the supply chains. The shares fell 3% in the premarket.

Shares of the jewelry retailer Signet Jewelers rose 5.5% in the premarket immediately after the company reported an adjusted quarterly profit of $ 3.57 per share, which is significantly higher than the consensus forecast of $ 1.69.

Perhaps the biggest growth was noted by the shares of ChargePoint, which jumped immediately by 12% in the premarket. The electric car charger company said that quarterly sales exceeded forecasts, raising its annual revenue forecast.

Okta, a software development company, reported an adjusted quarterly loss of 11 cents per share, which is less than analysts expected. Revenue was higher than estimates, but even though the company published a positive growth forecast for the end of the year, the shares fell by 1.5% in the premarket.

And in conclusion, I would like to mention the company C3 AI - a software provider for artificial intelligence. Its shares fell by 7.7% in the premarket after news of an unexpected quarterly loss was received. C3 AI lost 37 cents per share for the last quarter, compared with analysts' forecasts of a profit of 28 cents.

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From a technical point of view, the S&P 500 index can demonstrate a deeper downward correction — to the area of 4,513 points, and even return to the support of 4,480. If today passes in a fairly calm mode, we can expect the market to close above 4,500 points, which will open up a good potential for recovery at 4,600 and 4,750.

Jakub Novak,
Analytical expert of InstaForex
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