Wall Street was headed for an uninspired open Thursday after reversing days of losses Wednesday, as investors look ahead to economic data.
Overseas, Hong Kong’s
Hang Seng Index
fell 1.5% as the woes of highly indebted property developer Evergrande continued to weigh on markets. The pan-European
was 0.7% higher, buoyed by U.S. sentiment and led higher by travel stocks.
The market narrative was broadly unchanged, as investors continue to focus on economic growth prospects against the backdrop of the Covid-19 pandemic. Digesting economic data has been an important part of this analysis, and strong industrial production figures Wednesday gave markets the boost to close higher after stocks have been wobbly all month.
U.S. retail sales for August, the Philadelphia Federal Reserve manufacturing survey for September, and initial jobless claims for last week are the highlights of the economic data calendar in the day ahead.
“Markets, particularly in the U.S., are cherry-picking news headlines and tier-two data to fit the narrative of flip-flopping daily sentiment,” said Jeffrey Halley, an analyst at broker Oanda.
Halley said he expects to see Wall Street’s Wednesday surge reversed if U.S. retail sales print lower than -0.8%, but investors could equally ignore those data and focus on the Philadelphia Fed manufacturing survey or initial jobless claims.
“Hopefully, next week’s cast of …central bank policy decisions, starting with the Federal Reserve, delivers more thematic clarity,” Halley added.
Here are seven stocks on the move Thursday:
Budget European airline
(RYA.U.K.) lifted off 6% after lifting its long-term traffic forecast.
Embattled Chinese property giant
(3333.H.K.) slipped 6.5%, bringing its year-to-date decline to 81%. The latest update as the company moves closer to restructuring was that its main unit moved to suspend corporate bond trading after a credit downgrade.
The regulatory crackdown in Macau—the world’s largest gaming center—continues to hurt, with
(1128.H.K.) down 4.7% and
(1928.H.K.) 8%. Shares in the two companies’ parents—
Las Vegas Sands
(LVS)—were both down between 2% and 3% in U.S. premarket trading.
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