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Stock index futures were cautious Wednesday ahead of a last morning batch of economic numbers before Thanksgiving.
S&P futures (SPX), Nasdaq 100 futures (NDX:IND) and Dow futures (INDU) were little changed.
“Today will slow down very rapidly as the New York lunchtime approaches as planes, trains and automobiles are sequestered,” Deutsche Bank’s Jim Reid said. “Ahead of that we have a squeezed data dump in the US.”
The 10-year Treasury yield (US10Y) fell 2 basis points to 4.40%. The 2-year yield (US2Y) was flat at 4.88%.
Before the bell, weekly initial jobless claims arrive. The forecast is for a drop to 225K.
“Initial jobless claims are interesting for two reasons,” Reid said. “First this week corresponds to payroll survey week and secondly payrolls have been edging higher over the last month.”
“Indeed the +236k our economists expect would be nearly +10% above the survey week from the previous payroll report. So one to watch.”
At the same time, October durable goods figures hit. Economists expect a drop of 3.1%, with core orders up 0.1%.
“US October durable goods orders have conflicting drivers,” UBS’ Paul Donovan said. “Consumers are not increasing spending on durable goods (European spending is slowing).”
“Companies pursuing capital for labor substitution plans are investing in durable goods, but other companies are cutting back. Flexible working reduces demand for office furniture, for instance.”
After the start of trading the final measure of Michigan November consumer sentiment is due. The preliminary report showed a drop to 60.4.
“The initial print for 5-10 year expectations were at 3.2% the highest since 2011,” Reid noted. “The final reading is often revised lower but if not this will be unwelcome news for the Fed.”
