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. REUTERS/Carlo Allegri

* 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 worldwide.

Futures snapshot at 7:01 a.m. ET:

* Dow e-minis were down 3 points, or 0.01 percent, with 17,934 contracts changing hands.

* S&P 500 e-minis were down 0.75 points, or 0.03 percent, with 114,949 contracts traded.

* Nasdaq 100 e-minis were up 5.5 points, or 0.09 percent, on volume of 26,347 contracts.

(Reporting by Tanya Agrawal in Bengaluru; Editing by Anil D'Silva)

[ 2017 Thomson Reuters. All rights reserved.]

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