US futures on Thursday were mixed ahead of an update on the US economy and another hefty corporate earnings.
Dow Jones Industrial futures rose 0.7% and the S&P 500 rose 0.1%.
The tech-heavy Nasdaq fell 0.5% in the premarket, dragged by Facebook’s parent company Meta. Meta’s stock fell 22% after advertising spending dried up and profits dwindled.
After the market closed Wednesday, Meta reported its second straight quarter of declining revenue amid declining ad sales and competition from TikTok’s massive video app. Meta’s disappointing results follow weak earnings reports this week from Google’s parent company Alphabet and Microsoft. Amazon and Apple will report on Thursday after the bell.
McDonald’s is up 3% in the premarket after reporting strong sales in the third quarter, boosted by customer engagement on the app. Southwest Airlines reported record operating revenues in the third quarter, up more than 4%, thanks to strong summer travel demand.
As earnings continue to perform well, investors await more US economic data and a European Central Bank meeting expected to raise key rates to 13-year highs to combat stubborn inflation. I was there.
The U.S. government released its first estimate of gross domestic product for the third quarter before markets opened on Thursday, with forecasters expecting the economy to slow in the three months ending September following a two-quarter contraction. We expect the data to show that has grown.
Investors hope that indicators of weaker home sales and consumer confidence will help Fed officials decide that rate hikes are working and that fewer hikes are needed.
The Fed is expected to raise the benchmark lending rate by another three-quarter percentage point at its November meeting.
In Europe, the ECB, which manages the euro currency used by Germany, France and 17 other countries, is expected to raise benchmark lending rates by up to 0.75 percentage points.
Traders fear that aggressive rate hikes this year could lead the global economy into recession.
StoneX’s Fawad Razakzada said in a note that the ECB “will have to turn a blind eye” to signs of slowing activity “as it struggles to keep inflation under control.”
At midday, London’s FTSE 100 was up 0.1%, while Frankfurt’s DAX was down 0.9% and Paris’ CAC 40 was down 1%.
In Asia, the Shanghai Composite Index fell 0.6% to 2,982.90 and Tokyo’s Nikkei 225 fell 0.3% to 27,345.24. Hong Kong’s Hang Seng he was up 0.7% to 15,425.03.
Seoul’s Kospi rose 1.7% to 2,288.72 after economic growth slowed in the three months ending September to a one-year low of 0.3% in the previous quarter after gaining 0.7% in the previous quarter. I was.
Sydney’s S&P-ASX 200 rose 0.5% to 6,845.10 and India’s Sensex rose 0.2% to 59,660.19. New Zealand and Southeast Asian markets rose.
In the energy market, benchmark US crude rose 28 cents to $88.19 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the benchmark for international oil trading, rose 25 cents to $94.04 a barrel in London.
The dollar rose to 146.71 from 146.26 on Wednesday. The euro fell from his $1.0080 to his $1.0046.
On Wednesday, the S&P 500 Index fell 0.7%, breaking three days of gains, while the tech-heavy Nasdaq Composite Index fell 2%. The Dow ended largely unchanged.
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McDonald’s reported from Beijing. Ott reported from Washington.
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