Futures little changed
after Dow breaches 22,000
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[August 03, 2017]
By Tanya Agrawal
(Reuters) - U.S. stock index futures were
little changed on Thursday as investors booked profits, a day after the
Dow industrials breached the 22,000 mark for the first time.
* Apple's strong quarterly results were a key driver that helped the
blue chip index cross the milestone.
* However, the Nasdaq and the S&P 500 were held back as other major tech
stocks lost ground following recent strong gains that have made the
sector the strongest performer in 2017. The S&P tech index is up 23
percent this year.
* The Dow has risen 11.4 percent and the S&P is up 10.6 percent in 2017,
even as Wall Street loses confidence that President Donald Trump will be
able to legislate his pro-growth agenda this year.
* Investors are also keeping an eye on the economic data for clues on
the health of the economy ahead of the keenly awaited monthly payrolls
data on Friday.
* The Labor Department may report that initial claims for state
unemployment benefits rose to 242,000 for the week ended July 29. The
data is due at 8:30 a.m. ET (1230 GMT)
* U.S. Commerce Department data is expected to show that factory goods
orders rose 2.9 percent in June, compared with a fall of 0.8 percent in
the previous month.
* Separately, the Institute for Supply Management is likely to report
that its non-manufacturing index lowered slightly to 57.0 in July from
57.4 in June.
* Quarterly earnings continue to be in the spotlight as investors take a
closer look at valuations to justify the recent runup in stocks.
* The S&P 500 is trading at around 18 times earnings estimates for the
next 12 months, well above its long-term average of 15 times.
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The Wall St sign is picture in front of the New York Stock Exchange
(NYSE) in New York City, New York, U.S., August 2, 2017.
* At the same time, earnings of S&P 500 companies are now expected to have
climbed 11.4 percent in the second quarter, up from an 8 percent rise estimated
at the start of the month, according to Thomson Reuters I/B/E/S.
* Shares of Tesla jumped 6.48 percent in premarket trading after the luxury
electric car maker said its quarterly revenue more than doubled.
* Fitbit rose 4.54 percent as the wearable device maker reported a
smaller-than-expected drop in quarterly revenue.
* Aetna was up 3.14 percent after the health insurer's profit best expectations.
* Yum Brands fell 0.65 percent after the owner of KFC and Taco Bell reported a
lower-than expected rise in quarterly sales at established restaurants
Futures snapshot at 7:01 a.m. ET:
* Dow e-minis were down 3 points, or 0.01 percent, with 17,934 contracts
* S&P 500 e-minis were down 0.75 points, or 0.03 percent, with 114,949 contracts
* Nasdaq 100 e-minis were up 5.5 points, or 0.09 percent, on volume of 26,347
(Reporting by Tanya Agrawal in Bengaluru; Editing by Anil D'Silva)
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