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Former Citigroup Chief Economist Bill Lee joins “Lou Dobbs Tonight” with analysis.
US equity futures are trading lower ahead of Thursday’s Wall Street session.
Nasdaq futures are suggesting a decline of 1.0%, while the Dow Jones is down 0.2%.
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Investors will get a first glimpse of fourth quarter growth. The GDP report is expected to show that the US economy grew at a seasonally adjusted annual rate of 4.0%, from a record 33.4% in the third quarter.
At the same time, the Department of Labor will report on new claims for unemployment benefits for the past week. Watch for a decrease from 25,000 to 875,000. Continuing claims, which track the total number of unemployed receiving benefits, is expected to hold steady at 5.054 million.
Finally, the Census Bureau is expected to say that sales of new single-family homes rose 1.9% in December to a seasonally adjusted annual rate of 865,000.
THE AMERICAN ECONOMY PROBABLY RECORDED ITS BEST PERFORMANCE IN 74 YEARS IN 2020
On the earnings front, a significant stream of corporate earnings is expected from Comcast, Northrop Grumman, McDonald’s, Altria Group, American Airlines, Southwest Airlines and Mastercard with all reports before the opening bell.
In Europe, London’s FTSE fell 1.4%, Germany’s DAX fell 1.6%, and France’s CAC fell 0.8%.
In Asia, the Japanese benchmark Nikkei 225 fell 1.5%, Hong Kong’s Hang Seng fell 2.6% and China’s Shanghai Composite fell 1.9%.
The Democrats’ small majority in the Senate have raised doubts about how quickly the economy will receive new support after President Biden offered a $ 1.9 trillion COVID relief package. The plan could also be reduced.
The Federal Reserve said on Wednesday it would keep its low interest rate policies in place, but it also released a sobering assessment of the gradual recovery ahead.
VACCINATIONS ARE KEY TO US ECONOMIC RECOVERY, Says Fed Powell President
On Wall Street, a liquidation of tech companies sent stocks tumbling in a reversal of recent market movements to record highs.
The S&P 500 was down 2.6% to 3,750.77. The Dow Jones fell 2% to 30,303.17. The Nasdaq slipped 2.6% to 13,270.60. The Russell 2000 Small Business Index was down 1.9% to 2,108.70.
| Teleprinter | security | Latest | Change | % Change |
|---|---|---|---|---|
| I: DJI | MEDIUM DOW JONES | 30303.17 | -633.87 | -2.05% |
| SP500 | S&P 500 | 3750.77 | -98.85 | -2.57% |
| I: COMP | NASDAQ COMPOSITE INDEX | 13270.597569 | -355.47 | -2.61% |
Facebook, Netflix and parent company Google Alphabet led the pullback, which began early in the day as investors assessed the company’s latest batch of earnings reports. The market slippage accelerated towards the end of the day.
Traders also focused on the soaring rise of GameStop, a money-losing video game seller that has become the center of a battle between small investors who bid higher and large hedge funds betting he would fall.
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The volatility of trade has caught the attention of officials at the highest levels of government. The White House said the Biden administration, including the Treasury Department, was monitoring the situation.
Boeing fell 4% after the aircraft manufacturer recorded its biggest annual loss in company history, mainly due to the grounding of Boeing’s 737-MAX fleet.
APPLE RELEASES FIRST QUARTER OF $ 100B IN COMPANY HISTORY AFTER STRONG VACATION DEMAND FOR IPHONE 12
Apple’s revenue rose 21% to $ 111.4 billion in the first quarter, reflecting the first full sales figures for the iPhone 12 since its October 23 release. Total revenue topped expectations on Wall Street, where analysts estimated sales at $ 103.28 billion, and marked the $ 100 billion first quarter in Apple history.
Facebook Inc. posted record fourth quarter revenue and profits, as holiday online shopping and increased use of the company’s platforms during the pandemic led to an increase in its advertising activity.
Tesla recorded first profitable year after sixth straight quarter of gains
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In energy trading, benchmark US crude fell 17 cents to $ 52.68 per barrel in electronic trading on the New York Mercantile Exchange. It picked up 24 cents at $ 52.85 a barrel on Wednesday. Brent, the international standard, fell 16 cents to $ 55.65 a barrel.
The Associated Press contributed to this article.
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