5 things to know before the stock market opens Thursday, September 2



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Here are the most important news, trends and analysis investors need to start their trading day:

1. Stock futures slightly positive as Wall Street waits for jobs data

Traders work on the floor of the New York Stock Exchange.

NYSE

Stock futures were slightly higher on Thursday as Wall Street awaits major labor market reports that will provide a snapshot of the US economic recovery. Futures on Dow implied an opening gain of around 60 points, while futures on the S&P 500 and Nasdaq were also in the green. The movement in futures follows a relatively quiet session on Wednesday, which saw the Dow at 30 close 48.20 points lower, or 0.1%, and the large S&P 500 advancing only 0. 03%. The tech-rich Nasdaq, however, rose 0.3% to another closing record. The S&P 500 and Nasdaq have posted gains in three of their past four sessions, while the Dow has fallen in the past three days. The 10-year Treasury yield plunged about 1 basis point Thursday to 1.29%.

2. Initial jobless claims are expected to hit a pandemic low

A job seeker fills out an application form at a restaurant and hospitality career fair in Torrance, Calif. On June 23, 2021.

Eric Thayer / Bloomberg via Getty Images

The first unemployment claims for the week ended Saturday are expected to total 345,000, which would be the lowest level since the start of the Covid pandemic in March 2020, according to Dow Jones estimates. The first unemployment insurance claims for the previous week stood at 353,000, the Labor Department reported on August 26. Weekly data on UI claims precedes the key August non-farm wage report. Consensus forecasts predict that the US economy created 720,000 jobs for the month, according to Dow Jones, and the overall unemployment rate is expected to drop to 5.2% from 5.4%.

3. Apple plans to change the payment policy for certain applications

Apple allows certain apps to provide a link to their websites, where users can then sign up directly for a paid subscription. The change, announced by the iPhone maker on Wednesday, comes as Apple faces intense criticism and regulatory review for its payment policies on the App Store. The change is expected to take effect next year and applies to so-called playback apps, such as Netflix and Spotify. Before this change, app makers had to go through Apple’s own billing service, which took a 15-30% discount on in-store purchases, instead of offering users the option to sign up on developer websites. In-app purchases for games must always go through the App Store.

4. Divided Supreme Court Refuses to Block Texas Abortion Law

A worker clears the steps as morning dawns on the United States Supreme Court building, still closed to the public during the coronavirus disease (COVID-19) outbreak in Washington, April 26, 2021.

Jonathan Ernst | Reuters

In a 5-4 decision Wednesday night, the Supreme Court refused to block the implementation of a Texas law that bans most abortions in the nation’s second most populous state. Chief Justice John Roberts joined the three High Court Liberals – Justices Stephen Breyer, Sonia Sotomayor and Elena Kagan – in dissent. The majority order is “astonishing,” Sotomayor wrote. She argued that Texas law, which prohibits abortion after six weeks of pregnancy, when many women have yet to find out they are pregnant, “flouts nearly 50 years of federal precedent.”

The court ruling came in response to an emergency request filed earlier this week by abortion providers and advocates who sought to prevent the law from coming into force after midnight on Wednesday. However, the judges suggested that further court challenges may be brought against the Texas law, which means Wednesday’s order allowing its implementation may not be the last word on its constitutionality.

5. Ida hits New York, New Jersey, killing at least 8

A worker unblocks drains on a flood-affected street in Brooklyn, New York, in early September 2, 2021, as flash floods and record-breaking precipitation from the remnants of Storm Ida swept through the area.

Ed Jones | AFP | Getty Images

States of emergency were issued for New York and New Jersey after they were battered by the remnants of Hurricane Ida, killing at least eight people. Torrential rains flooded area streets and homes on Wednesday night, and service on many New York City subway lines was suspended as water flooded the transportation system. Record precipitation has been recorded in Central Park, according to the National Weather Service. At least one tornado has been recorded in New Jersey, destroying several homes. In Louisiana, where Ida made landfall on Sunday, about 900,000 utility customers went without power Thursday morning, according to the state’s Civil Service Commission. President Joe Biden plans to visit the state on Friday to see the damage caused by the storm.

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