Former Citigroup chief economist Bill Lee joins ‘Lou Dobbs Tonight’ for analysis.
U.S. stock futures are trading lower ahead of Thursday’s Wall Street session.
Nasdaq futures suggest a 1.2% decline, while the Dow fell 0.6%.
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Investors will have a first look at the fourth quarter’s growth. The GDP report should say that the US economy grew at a seasonally adjusted annual rate of 4.0%, compared to a record 33.4% in the third quarter.
At the same time, the Department of Labor will report on new claims for unemployment benefits last week. Note a reduction from 25,000 to 875,000. Continued claims, which track the total number of unemployed workers receiving benefits, are expected to remain stable at 5.054 million.
Finally, the Census Bureau must say that sales of new single-family homes increased by 1.9% in December, to a seasonally adjusted annual rate of 865,000.
THE US ECONOMY IS PROBABLY RECORDING ITS WEAKEST PERFORMANCE IN 74 YEARS IN 2020
In terms of profits, a large flow of corporate results 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 1.6%, Germany’s DAX fell 1.9% and France’s CAC fell 1.1%.
In Asia, Japan’s Nikkei 225 benchmark fell 1.5%, Hong Kong’s Hang Seng fell 2.6% and China’s Shanghai Composite fell 1.9%.
The small majority held by Democrats in the Senate raised doubts about when the economy will get an infusion of new support after President Biden proposed a $ 1.9 trillion COVID relief package. The plan can also be reduced.
The Federal Reserve said on Wednesday that it will keep its interest rate policies low, but also released a worrying assessment of the gradual recovery ahead.
VACCINATIONS ARE THE KEY TO THE ECONOMIC RECOVERY OF THE UNITED STATES, SAYS PRESIDENT POWELL
On Wall Street, a liquidation in technology companies caused stocks to plummet in a reversal of recent market movements to record highs.
The S&P 500 fell 2.6% to 3,750.77. The Dow lost 2% to 30,303.17. The Nasdaq fell 2.6% to 13,270.60. The Russell 2000 index of smaller companies dropped by 1.9% to 2,108.70.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| I: DJI | DOW JONES AVERAGE | 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 Google’s parent company, Alphabet, led the downturn, which started earlier in the day, as investors evaluated the company’s latest batch of earnings reports. The market slippage accelerated at the end of the day.
Traders were also focused on the astonishing rise of GameStop, a video game seller who loses money and has become the focus of a battle between small investors making higher offers and big hedge funds betting it will fall.
SEC MARKET VOLATILITY MONITORING AFTER GAMESTOP, AMC TRADING CHAOS
Volatile trade caught the attention of officials at the highest levels of government. The White House said the Biden government, including the Treasury Department, is monitoring the situation.
Boeing fell 4% after the aircraft maker recorded its biggest annual loss in the company’s history, mainly due to the stranding of Boeing’s 737-MAX fleet.
APPLE POSTS THE FIRST QUARTER OF $ 100B OF COMPANY HISTORY AFTER THE STRONG DEMAND FOR IPHONE 12 HOLIDAYS
Apple’s revenue increased 21% to $ 111.4 billion in the first quarter, which reflected the first full sales figures for the iPhone 12 since its launch on October 23. Total revenue exceeded projections on Wall Street, where analysts estimate sales of $ 103.28 billion, and marked the first quarter of $ 100 billion in Apple’s history.
Facebook Inc. posted record revenue and earnings in the fourth quarter as end-of-year online shopping and increased use of the company’s platforms during the pandemic boosted its advertising business.
Tesla posted its first profitable year after the sixth consecutive quarter of earnings
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In the energy trade, US reference oil lost 51 cents to $ 52.34 a barrel in e-commerce on the New York Mercantile Exchange. It rose 24 cents to $ 52.85 a barrel on Wednesday. Brent crude, the international standard, dropped 38 cents to $ 55.43 a barrel.
The Associated Press contributed to this article.