Major US stock futures were lower early on Thursday, as many market participants focused on new economic data and comments from central bank policy makers, including initial jobless claims, housing and the Philadelphia Federal Reserve’s manufacturing survey. , Dow Jones Industrial Average futures were down about 7 points, while S&P 500 futures and Nasdaq 100 futures were down about 0.11% and 0.0 %, respectively. Losses during the regular session were followed by , intraday moves, with the SandP 500 down 1.56%, one of its worst sessions since mid-December. The Dow lost more than 613 points and the Nasdaq Composite lost 1.2 %, ending its seven-day winning streak. Banking companies like JPMorgan, Bank of America and Wells Fargo moved lower and dragged down their industries. In addition, US economic data on depressed retail sales and weaker than expected producer price indices added to recession worries and weighed on the stock market. “The data continues to confirm the sharp decline in inflation,” says Jamie Cox, CEO of Harris Financial Group. “The question now is whether the economy can withstand a sharp rise in interest rates to contain inflation.” He continued that “while those who said inflation would pass may now feel vindicated, the cost of getting there has yet to be realized.” “At least there will be a decline in earnings and that will keep stocks low until that happens,” he added. The focus is also shifting to earnings reports, with companies including Netflix, Procter and Gamble reporting earnings on Thursday. In last October’s earnings report, Netflix announced that they expect about .5 million subscribers in the fourth quarter, and while the number of Netflix subscribers decreased in the first two quarters of 2022, a new advertising-based subscription was launched in November for customers who wanted a cheaper tier. Oil prices fell nearly $1 early Thursday after disappointing U.S. data reignited recession fears and as industrial data showed a build in U.S. crude inventories further weighed on prices. Brent crude futures at , were down about 8 cents, near $8 .16 a barrel, at 0710 GMT after falling about 1%. US West Texas Intermediate (WTI) crude futures also lost about 90 cents to trade near $78.58 a barrel. “Weakening US economic data dampened the outlook for (oil) demand as recession fears resurface. Risk-averse sentiment pushed growth-sensitive commodities, typically oil, lower,” said CMC Markets analyst Tina Tengi. “Profit seeking may also be the reason that pushed oil prices ahead of big US technology gains.” December US retail sales disappointed, while US industrial production fell more than expected in December, one of the biggest declines in two years Federal Reserve policymakers still said interest rates could rise above 5% even if they see signs. at peak inflation and economic slowdown. As interest rates continued to rise, the US dollar strengthened, affecting demand for oil, as a stronger dollar typically makes dollar-denominated goods more expensive for holders of other currencies.
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