Dow futures rise 30 pts; debt ceiling bill progress helps tone

Investing.com -- U.S. stocks are seen opening marginally higher Thursday after a deal to lift the debt ceiling passed through the House of Representatives, making a calamitous U.S. default less likely.

At 07:00 ET (11:00 GMT), the Dow futures contract was up 30 points, or 0.1%, S&P 500 futures traded 10 points, or 0.3% higher, and Nasdaq 100 futures climbed 30 points, or 0.2%.

The tense situation surrounding the U.S. debt ceiling may be moving toward a conclusion in the coming days after the House of Representatives voted on Wednesday in favor of a deal lifting the $31.4 trillion borrowing limit.

The bill, which would suspend the debt ceiling until 2025 and cap some government spending, now heads to the Senate, with the upper chamber's majority leader Chuck Schumer saying he plans to bring the measure to the floor "as soon as possible."

This means the bill has a strong chance of being enacted into law before a potentially catastrophic government default on June 5.

With a potential default losing its power to impact markets, investors are increasingly turning back to the Federal Reserve’s next meeting, on June 13-14, as the next likely catalyst.

Federal Reserve Bank of Philadelphia President Patrick Harker said on Wednesday that he is inclined to vote for a pause in interest rate hikes at the get-together, but crucially he added Friday’s payrolls numbers "may change my mind."

The official U.S. jobs report at the end of this week is expected to show that nonfarm payrolls increased by 180,000 in May, a drop from 253,000 the prior month.

However, data released Wednesday showed that job openings, a measure of labor demand, increased by 358,000 to 10.1 million on the last day of April, ending three straight monthly decreases in job vacancies, while March’s release was also revised higher.

The May ADP nonfarm employment report as well as weekly initial jobless claims are due later in the session, and will provide more data for the market (and Fed officials) to digest.

In corporate news, quarterly earnings are due from the likes of chip maker Broadcom (NASDAQ:AVGO) and discount retailer Dollar General (NYSE:DG).

Additionally, Nordstrom (NYSE:JWN) stock rose almost 6% premarket after the department store operator reported better-than-expected sales for the April quarter.

By contrast, Salesforce (NYSE:CRM) stock fell 5.5% after the cloud-based software company posted an 11% rise in quarterly revenue, its slowest pace of growth in 13 years, as companies dialed back spending.

Oil prices fluctuated between gains and losses as traders digested a positive private survey of Chinese manufacturing activity as well as an unexpected, large build in U.S. crude stocks.

Data from the American Petroleum Institute showed U.S. crude inventories rose by around 5.2 million barrels last week. If confirmed by official data later in the session, this could trigger concerns of oversupply in the largest consumer market in the world.

By 07:00 ET, U.S. crude futures traded 0.7% lower at $67.59 a barrel, while the Brent contract dropped 0.7% to $72.08. 

Additionally, gold futures rose 0.1% to $1,983.75/oz, while EUR/USD traded 0.2% higher at 1.0709.

 

Begin trading today! Create an account by completing our form

Privacy Notice

At One Financial Markets we are committed to safeguarding your privacy.

Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.

Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.

Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.

By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Back to top

Office network

One Financial Markets is the trading name of Axi Financial Services (UK) Ltd, a company registered in England with company number 6050593. Axi Financial Services (UK) Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Sector Conduct Authority in South Africa (with FSP number 45784).

The information on this site is not directed at residents of the United States, Belgium, Poland or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

www.onefinancialmarkets.com is owned and operated by Axi Financial Services (UK) Ltd.

Award winning broker
We have been presented with a number of awards that recognise the quality of our service and dedication to our clients :

Best FSA Regulated Broker
Saudi Money Expo

Best Education Product
Saudi Money Expo

Best Broker - Online Trading
IAIR Awards

Best Institutional Broker
Saudi Money Expo

Best FX Services Broker
CN Forex

Top International
FX Broker 2015

Saudi Money Expo

Broker of the Year
Online Trading – Middle East

IAIR Awards

Best Forex
Customer Service 2018

JFEX Awards

We accept the following payment methods: