Stock futures were trading significantly lower on Thursday following a frantic sell-off of Japanese equities overnight that spooked risk-adverse investors across the globe.
The Nikkei plunged by as much as 850 points overnight in what was characterized as a technical sell-off after the stock index broke 23,000 for the first time in 25 years. The rout permeated European bourses before infiltrating the US, leaving the Dow set to open 100 points lower at the open.
Adding to the sour tone across Wall Street is the debate surrounding tax reform, specifically, whether or not the Republicans will be able to push through a 15% reduction in the corporate tax rate. Senate Republicans will introduce their own tax plan later Thursday which could vary in the scope of corporate taxes and the standard deduction for individuals.
On the economic front, initial jobless claims increased by 10,000 in the latest survey week to 239,000. This was above expectations for a gain of 3,000.
At 10 am ET, wholesale inventories are forecasted to show a 0.3% gain in September.
In the latest earnings update, Macy's ( M ) beat Wall Street's EPS forecast but missed on revenue; Kohl's ( KSS ) missed EPS estimates on in-line revenue; Office Depot ( ODP ) beat profit and sales expectations but issued FY17 guidance that was below the previous year.
-Dow Jones Industrial down 0.37%
-S&P 500 futures down 0.47%
-Nasdaq 100 futures down 0.71%
Nikkei down 0.20%
Hang Seng up 0.79%
Shanghai Composite up 0.36%
FTSE-100 down 0.58%
DAX-30 down 1.00%
PRE-MARKET SECTOR WATCH
(-) Large cap tech: Lower
(-) Chip stocks: Lower
(-) Software stocks: Lower
(-) Hardware stocks: Lower
(-) Internet stocks: Lower
(-) Oil stocks: Lower
(-) Biotech stocks: Lower
(+/-) Drug stocks: Mixed
(-) Financial stocks: Lower
(-) Retail stocks: Lower
(+/-) Industrial stocks: Mixed
(+/-) Airlines: Flat
(-) Autos: Lower
(+) OTIC (+116.07%) Reported mixed Q3 results, Otividex trial meets primary endpoint
(+) SAGE (+42.58%) Reported positive trial results in postpartum depression study
(+) ROKU (+28.40%) Q3 sales beats estimates, pro-forma loss narrows vs year ago
(-) QVCA (-34.49%) Reported net income of $119 million on $2.0 billion in revenue
(-) VSTO (-29.46%) Missed Q3 sales and lowered its outlook
(-) SNES (-22.66%) Disclosed plan to sell shares and warrants
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.