Stocks could turn down in early Thursday trading after closing the previous session with little change. Major index futures are currently market, The Dow futures are down 162 points.
China’s GDP growth slower than expected in the second quarter could lead to new concerns about the outlook for the global economy, according to a report from China’s National Bureau of Statistics.
According to the report, China’s GDP increased 7.9% year-on-year in the second quarter, embarrassed by expectations of an 8.1% increase, down sharply from 18.3% three months ago.
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The momentum of Wall Street’s decline will also keep traders digesting the latest earnings news, including quarterly earnings from Morgan Stanley (MS).
Morgan Stanley has fallen in pre-market trading, despite reporting better second-quarter performance than analysts expected.
The fall by Morgan Stanley reflects the performance of other well-known companies that reported better than expected results, leading to speculation that bright earnings news is already on the market.
A lot of US economic data was also released this morning, including a report from the Ministry of Labor showing that initial unemployment claims fell in line with economists’ estimates for the week ending July 10.
Initial unemployment benefits fell to 360,000, down 26,000 from last week’s revised level of 386,000, according to the report.
Economists expected unemployed claims to drop from 373,000, which was first reported last week, to 360,000.
With the decline, the first unemployment claims have fallen to the lowest level again since reaching 256,000 in the week ending March 14, 2020.
US import prices have risen in line with June economists’ estimates, according to another report released by the Ministry of Labor.
Meanwhile, separate reports from the Federal Reserve Bank of New York and the Federal Reserve Bank of Philadelphia provided different readings on the pace of growth in manufacturing activity in the two regions.
Shortly before the start of trade, the Federal Reserve Board will publish a report on industrial production in June. Industrial production is expected to rise 0.8% in May and then 0.7% in June.
Federal Reserve Board Chair Jerome Powell will also testify to the Senate Banking Commission from 9:30 EST.
Following the pullback seen during Tuesday’s trading, stocks showed a lack of direction in the course of Wednesday’s trading day. The main average spent days bouncing back and forth across the unchanged line.
In the end, the major averages ended the day with little change. The Nasdaq fell 32.70 points (0.2%) to 14,644.95, while the Dow rose 44.44 points (0.1%) to 34,933.23 and the S & P500 rose 5.09 points (0.1%) to 4,374.30.
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U.S. stocks fall due to disappointing Chinese GDP data