S&P 500, Nasdaq Futures Drop Lower As Traders Eye Fed Speeches, Friday's Jobs Report — Tesla, Twitter Pinterest, Credit Suisse Stocks In Focus

Zinger Key Points
  • Traders may opt to stay on the sidelines as they look ahead to what September non-farm payrolls report holds for Fed rates.
  • Trading could be marked by a lack of direction, although a big retreat seems less likely.
S&P 500, Nasdaq Futures Drop Lower As Traders Eye Fed Speeches, Friday's Jobs Report — Tesla, Twitter Pinterest, Credit Suisse Stocks In Focus

The major U.S. index futures point to a moderately lower opening on Thursday, potentially adding to the losses stocks incurred in the previous session.

On Wednesday, the major averages retreated, as rate worries and profit-taking following two straight sessions of solid gains exerted downward pressure on stocks. The market opened lower and fell further in early trading as traders digested better-than-expected private payroll data. Stocks, however, cut their losses over the course of the session and yet closed modestly lower.

Utility and real estate stocks were among the worst decliners, while energy stocks provided the offsetting impact.

U.S. Indices' Performance On Wednesday
Index Performance (+/-)   Value
Nasdaq Composite -0.25%   11,148.64
S&P 500 Index -0.20%   3,783.28
Dow Industrials -0.14%   30,273.87

Against the abounding uncertainties, it is best to be positioned with companies that survive a weak economy than companies that have more upside potential, hoping to retrace toward the previous highs, hedge fund manager Louis Navellier said in a note.

"Continue to use the volatility to reduce exposure of more speculative names on rallies and add high-quality on pullbacks," he added.

Here's a peek into index futures trading:

U.S. Futures' Performance On Thursday During Premarket Session
Index Performance (+/-)  
Nasdaq 100 Futures -0.79%  
S&P 500 Futures -0.76%  
Dow Futures -0.66%  
R2K Futures -1.11%  

In premarket trading on Thursday, the SPDR S&P 500 ETF TrustSPY retreated 0.69% to $374.50, and Invesco QQQ TrustQQQ declined 0.75% to $279.86, according to Benzinga Pro data.

On the economic front, the Labor Department is scheduled to release its jobless claims report for the week ended Oct. 1 at 8:30 a.m. EDT. The consensus calls for an increase in the number of individuals claiming unemployment benefits from 193,000 to 203,000.

U.S. Federal Reserve Board Governors Christopher Waller and Lisa Cook are scheduled to speak at 1 p.m. EDT. Cleveland Fed President Loretta Mester and Chicago Fed chief Charles Evans will make public appearances after the market closes.

See also: NYSE Just Had 2 Straight 90% Up Days In A Row. The Last Time That Happened In 2013, Here's What Came Next

Stocks In Focus:

  • Tesla, Inc. TSLA and Twitter, Inc. TWTR are once again in the spotlight as traders await any incremental update on Elon Musk's take-private deal. Gary Black of Future Fund said Tesla shares will likely languish until Musk renders further clarity on potential stock sakes to fund the deal.
  • Credit Suisse AG CS is reportedly seeking to sell the Savoy Hotel it owns as part of the restructuring initiatives.
  • Pinterest, Inc. PINS was rallying after Goldman Sachs upgraded the stock from Neutral to Buy and upped the price target from $24 to $31, on improving user growth trends, according to the Fly.

Commodity, Global Equity Markets

Crude oil futures are retreating modestly after tacking on over 10% in the previous three sessions amid the OPEC+ decision to cut output by a bigger-than-expected 2 million barrels per day.

The major Asian markets meandered to a mixed close on Thursday, as apprehension returned following Wall Street's retreat in the previous session. The Japanese, Taiwanese and South Korean markets advanced notably, while the Hong Kong and New Zealand markets ended lower for the session. The Chinese market remained closed on account of the National Day public holiday.

European stocks opened higher but reversed course in early trading and the major averages in the region were trading with notable losses by late morning trading.

Posted In: Nasdaq futuresS&P 500 futuresNewsPenny StocksFuturesPreviewsTop StoriesEconomicsFederal ReservePre-Market OutlookMarketsTrading Ideas