Market Snapshot: U.S. stock futures slip as bond yields remain elevated

Original post

U.S. stock futures traded lower Thursday, as investors kept an eye on geopolitical events and as 10-year bond yields remained elevated.

A smattering of economic reports are on tap, while earnings from major retailers such as Walmart Inc. will be in the spotlight.

What are markets doing?

Dow Jones Industrial Average futures YMM8, -0.05%  slipped 31 points, or 0.1%, to 24,708, while S&P 500 futures ESM8, -0.14%  fell 4.1 points, or 0.2%, to 2,718.75. Nasdaq-100 futures NQM8, -0.35%  dropped 21.25 points, or 0.3%, to 6,916.25.

On Wednesday, the Dow Jones Industrial Average DJIA, +0.25% rose 62.52 points, or 0.3%, to 24,768.93. The S&P 500 index SPX, +0.41% gained 11.01 points, or 0.4%, to 2,722.46, and the Nasdaq Composite COMP, +0.63% advanced 46.67 points, or 0.6%, to 7,398.30.

Standing out Thursday, the small-cap benchmark Russell 2000 index RUT, +1.00%  hit an all-time high of 1,620.64. The index also closed at a record, ending at 1,616.37, a gain of 16.03 points, or 1%.

What’s driving the market?

Investors mettle may be tested as bond yields continued to climb Thursday. The yield on the 10-year Treasury note TMUBMUSD10Y, +0.27% remained elevated at 3.11% after rising to a seven-year high of 3.093% on Wednesday. A move above 3% has been cited as a psychologically significant level that could make equities appear less attractive.

Trade-war concerns may remain, while there are still questions around North Korea after Pyongyang signaled a day earlier that Kim Jong Un might pull out of next month’s summit with President Donald Trump if the U.S. insists on denuclearization for the isolated nation.

What data are in focus?

Updates for weekly jobless claims and the Philly Fed index for May are both due at 8:30 a.m. Eastern Time, followed by leading indicators for April at 10 a.m. Eastern.

Minneapolis Fed President Neel Kashkari will take part in a moderated discussion at 10:45 a.m. Eastern

What stocks are in focus?

1786, +0.47% 1786, +0.47% Cisco Systems Inc. CSCO, -0.70%  may come under pressure after services revenue at the networking giant fell short of Wall Street expectations, in earnings late Wednesday.

Take-Two Interactive Software Inc. TTWO, -0.35%  stumbled late Wednesday after the videogame publisher missed its revenue forecast and provided weaker-than-expected guidance.

Walmart Inc. WMT, +1.90%  , Childrens Place Inc. PLCE, +1.88%  and J.C. Penney Co. Inc. JCP, +5.50%  will report ahead of the bell, with Applied Materials Inc. AMAT, +2.00%  and Nordstrom Inc. JWN, +2.39%  due after the close.

See Walmart earnings preview

What are other markets doing?

Asian markets were trading mixed, while European stocks SXXP, +0.12% SXXP, +0.12% opened.

Gold futures GCM8, -0.26% falling 0.3%, while the ICE U.S. Dollar Index DXY, -0.02% held steady, and oil futures CLM8, +0.85% advanced 0.3% to $71.68 a barrel.