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postUS stocks trod water before the bell on Thursday as Wall Street waited for fresh jobless data to help calculate interest-rate odds amid uncertainty about Federal Reserve unity on policy.
Futures on the Dow Jones Industrial Average (YM=F) wobbled along the flatline, and those tied to the S&P 500 (ES=F) lost 0.2%. Meanwhile, contracts on the tech-heavy Nasdaq 100 (NQ=F) nudged down 0.3%, after the major gauges closed lower for a second day.
Markets are putting the brakes on stocks’ recent record-breaking rally amid debate over whether AI fervor is stretching valuations too much. At the same time, the uplift from the Federal Reserve’s switch to lowering rates is fading, as signs of division among policymakers dent hopes for another two cuts this year.
The spotlight is now on weekly jobless claims data due later, given Fed officials have highlighted concerns about slowdown in the labor market. Thursday’s docket also brings readings on US second quarter GDP, personal consumption, and existing home sales, among other economic data.
That sets the stage for Friday’s release of the Personal Consumption Expenditures index, the Fed’s preferred gauge of inflation. The PCE print for August is expected to show an easing in price pressures, which could make a case for a shift in rates policy.
In corporates, Costco (COST) is expected to report its quarterly results after the bell on Thursday. Investors expect to see a jump in sales as shoppers pursue deals amid economic uncertainty.
LIVE 7 updates
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White House amps up shutdown stakes with threats of mass firings
The White House budget office directed federal agencies to devise plans to permanently reduce their workforces if the government shuts down next week, raising the stakes of an outcome that looks increasingly likely by the day.
Politico reports that the White House memo targets “employees who work for programs that are not legally required to continue.”
More:
The shutdown, set for 12:01 a.m. next Wednesday, represents an increasingly present threat to markets. President Trump this week scrapped a planned meeting with Democrats, who are seeking an extension of healthcare subsidies under the Affordable Care Act to be included in a spending bill.
Reuters has a good explainer on how shutdowns affect markets.
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‘Security from what?’: The unanswered questions about how Trump’s TikTok deal will work
Three milestones in the months ahead will determine how smoothly China might be able to spin off TikTok — amid questions about Oracle’s (ORCL) role as security provider.
Yahoo Finance’s Ben Werschkul reports:
Read more here.
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Intel stock pops on report it’s looking to Apple for investment
Shares in Intel (INTC) are up over 3% in premarket trading, set to build on the prior day’s jump, after Bloomberg reported the US chipmaker is in discussions with Apple (AAPL) for an injection of funds.
Bloomberg reports:
Read more here.
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Good morning. Here’s what’s happening today.
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Premarket trending tickers: Intel, Hertz and Qualcomm
Here’s a look at some of the top stocks trending in premarket trading:
Intel (INTC) stock rose more than 3% in premarket trading on Thursday following news it had approached Apple (AAPL) about securing investment. Nvidia (NVDA) announced this month it will invest $5 billion in Intel.
Hertz (HTZ) shares jumped 4% before the bell after announcing it will raise capital by selling $250 million exchangeable senior notes.
Qualcomm (QCOM) stock fell 1% in premarket trading on Thursday. The group announced a series of new chips for PCs and phones the day prior.
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Call of the morning: Redburn drops a Sell on Oracle
As a former analyst, I love gutsy calls on stocks. My vibe was often to go against the grain where it made sense. Sometimes it worked, sometimes it didn’t — it was fun either way.
I have to give Redburn’s Alex Haissl a shout-out this morning for dropping a Sell rating on one of the hottest stocks of the year, Oracle (ORCL). Haissl makes a compelling case to take profits in Oracle, in a new 59-page report shared with me.
Here’s his overall thesis:
Haissl slapped Oracle with a $175 price target, assuming 42% downside from current levels.
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China tech stocks rise with record win streak in view
Chinese tech stocks extended their rally on Thursday as investors stayed enthusiastic for the country’s AI developers.
Bloomberg reports:
Read more here.
