US stock market poised to lose grip on records after inflation report, jobless claims – MarketWatch

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U.S. stock futures retreated from records on Thursday following data on jobless claims and inflation, which helped to keep benchmarks in check after a recent run of back-to-back records.

The headline U.S. consumer-price index figure came in at 0.4% in August, beating consensus estimates for a gain of 0.3%, while jobless claims on the month came in 284,000, versus forecasts for 300,000.

S&P 500 futures ESU7, -0.25%  shed 5 points, or around 0.2%, to 2,489.50, while Dow Jones Industrial Average futures YMU7, -0.16%  lost 28 points, or 0.1%, to 22,083. Nasdaq-100 futures NQU7, -0.47%  tumbled 27.75 points, or 0.5%, to 5,982.

On Wednesday, the S&P 500 SPX, +0.08% Dow DJIA, +0.18%  and Nasdaq Composite Index COMP, +0.09%  all gained between 0.1% and 0.2%, finishing at all-time closing highs for a second straight session.

“The S&P 500 continues to confound skeptical investors, as it adds to its above-average number of new highs,” said Sam Stovall, CFRA’s chief investment strategist, in a note. The benchmark has scored 33 record closes this year, more than twice the annual average since 1945.

Read: Stock market’s 5-month win streak should cheer the bulls

Economic and political news: The Federal Reserve “would love to see inflation picking up as the stagnating price growth has been an issue for the U.S. central bank,” said Konstantinos Anthis, an analyst at ADS Securities, in a note.

“Analysts are expecting a bullish reading from the States today, and this would help the dollar extend its current uptrend.”

Check out: MarketWatch’s Economic Calendar

Meanwhile, the Bank of England on Thursday kept its key interest rate on hold and made no changes to its quantitative-easing program, but warned that rates could rise faster than traders currently are pricing in. Those comments helped to drive the pound GBPUSD, +1.2112% to $1.33 against the U.S. dollar in recent trade.

Don’t miss: Inflation data could give traders a surprise

The ICE U.S. Dollar Index DXY, -0.09% was lower Thursday, despite the better-than-expected economic readings, but it has gained about 1% this week, paring its year-to-date loss to around 9.6%.

On the political front, President Donald Trump and top Democrats appear to be nearing a deal to give legal status to the children of illegal migrants, but also were disputing what they had agreed on so far. Trump tweeted early Thursday that no deal had been reached yet, after Democrats late Wednesday said they had an agreement with him to enact protections for “Dreamers” in exchange for increased border security measures that don’t include funding for a wall.

Other markets: European stocks SXXP, -0.09% mostly edged lower, while Asian markets closed with losses after weaker-than-anticipated data on China’s industrial activity.

Oil futures CLV7, +1.03%  traded higher, while gold futures GCZ7, +0.03%  were roughly unchanged, paring firmer losses.

Stocks to watch: Shares in Equifax Inc. EFX, -14.63%  fell 2% in premarket action, putting the credit-reporting company’s stock on track to extend a huge selloff sparked by its disclosure last week of a massive data breach.

See: Equifax down 31% since breach disclosure, erasing $5 billion in market cap

Lattice Semiconductor Corp.’s stock LSCC, +3.06%  rose 1% in thin premarket trading after Trump nixed a pending buyout of the chip company by a group of Chinese investment funds, citing national security concerns.

See: Trump stops China from buying into U.S. chip industry, but what’s next?

Shares in Oracle Corp. ORCL, +0.06%  could see active trading as the software giant is due to post quarterly earnings after the close.

Read: Oracle earnings—cloud sales expected to top new software licenses for first time

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