Stock futures are mixed on virus issues

U.S. equity futures are trading mixed before the release of the latest jobless claims report.

Dow futures suggest a 0.5% drop when trading begins on Thursday. The Nasdaq is trading higher.

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Excitement over the news of potentially effective COVID-19 vaccines has been tempered by concerns about the logistical challenges of accessing billions of people. Meanwhile, the number of cases is increasing, leading governments to reinstate restrictions on businesses and other activities to fight the pandemic.

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Before the opening bell on Wall Street, the Department of Labor is expected to say that the number of unemployment benefit claims fell from 16,000 last week to 735,000. That would be the lowest since March 14.

At the same time, the Bureau of Labor Statistics is expected to say that consumer prices edged up 0.1% in October, half of September’s monthly increase. On a YoY / yr basis, watch prices rise 1.3%, down slightly from the 1.4% increase in September.

In Europe, London’s FTSE fell 0.2%, Germany’s DAX fell 0.6%, and France’s CAC fell 0.7%.

In Asia, Tokyo’s Nikkei 225 index rose 0.7% despite a report that machine orders fell in September, suggesting weakness in business investment.

The mood was darker elsewhere in Asia. Hong Kong’s Hang Seng Index was down 0.2% and China’s Shanghai Composite Index was down 0.1%.

On Wednesday, the Dow Jones Industrial Average edged down 0.1%, to 29,397.63, led by lower prices for companies like American Express and Walt Disney, which had soared this week after the announcement of a potentially effective vaccine sent to travel, entertainment and tourism businesses. outbreak.

The Dow declined shortly after news broke that New York would impose restrictions on bars, restaurants and gyms as COVID-19 infections increased in the state.

The S&P 500 rose 0.8% to 3,572.66 and is just 8 points lower than the record it set in September. The high-tech Nasdaq composite rose 2% to 11,786.43.

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While several significant risks remain for Wall Street overall, the optimistic case investors are adopting is that one or more coronavirus vaccines could help corral the virus by the second half of next year, encouraging people get back to life as before the pandemic.

Democrat Joe Biden won enough electoral votes to win the White House, dispelling some of the uncertainty that hung over the market during the vicious campaign. Even though President Trump has refused to concede, investors are so far ignoring his complaints. Rather, they assume that a division of Washington under Biden could keep tax rates low while providing more stable and predictable policies.

These expected results have helped push Goldman Sachs strategists to raise their forecast for the S&P 500 at the end of this year to 3,700 from 3,600. That would imply another 4.4% rise from Tuesday’s closing level. They expect it to rally another 16% by 2021. But the main driver of that is the hope of a return to normal life, rather than what is happening in Washington.

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In the remaining trades, benchmark US crude added 13 cents to $ 41.58 per barrel in e-commerce on the New York Mercantile Exchange. It climbed 9 cents to $ 41.45 on Wednesday.

Brent, the international standard gained 10 cents to $ 43.90 a barrel.

The Associated Press contributed to this report.