Stocks Slip Before the Open With Focus on U.S. Economic Data and Fed Speak

December S&P 500 E-Mini futures (ESZ25) are down -0.28%, and December Nasdaq 100 E-Mini futures (NQZ25) are down -0.40% this morning, pointing to more weakness on Wall Street after two days of losses, while investors await a fresh batch of U.S. economic data, remarks from Federal Reserve officials, and an earnings report from bulk retailer Costco.

In yesterday’s trading session, Wall Street’s three main equity benchmarks ended in the red. Freeport-McMoRan (FCX) tumbled nearly -17% and was the top percentage loser on the S&P 500 after the miner cut its Q3 copper and gold sales guidance and declared force majeure on contracted copper supplies from its Grasberg mine in Indonesia. Also, Bloom Energy (BE) plunged more than -10% after Jefferies downgraded the stock to Underperform from Hold with a price target of $31. In addition, Adobe (ADBE) fell over -2% after Morgan Stanley downgraded the stock to Equal Weight from Overweight. On the bullish side, Marvell Technology (MRVL) climbed more than +7% and was the top percentage gainer on the Nasdaq 100 after the semiconductor company’s board authorized a new $5 billion share repurchase program.

Economic data released on Wednesday showed that U.S. new home sales unexpectedly surged +20.5% m/m to a 3-1/2-year high of 800K in August, stronger than expectations of 650K.

Meanwhile, U.S. Treasury Secretary Scott Bessent on Wednesday voiced disappointment that Fed Chair Jerome Powell has not clearly outlined an agenda for lowering interest rates. “Rates are too restrictive; they need to come down,” Bessent said in an interview on Fox Business. “I’m a bit surprised that the chair hasn’t signaled that we have a destination before the end of the year of at least 100 to 150 basis points.”

San Francisco Fed President Mary Daly said on Wednesday that more interest rate cuts will likely be needed, but noted that policymakers should proceed carefully. “It is likely that further policy adjustments will be needed as we work to restore price stability while providing needed support to the labor market,” Daly said.

U.S. rate futures have priced in a 91.9% probability of a 25 basis point rate cut and an 8.1% chance of no rate change at October’s monetary policy meeting.

Today, all eyes are focused on the U.S. Commerce Department’s final estimate of gross domestic product. Economists expect the U.S. economy to expand at an annual rate of 3.3% in the second quarter.

Investors will also focus on U.S. Durable Goods Orders and Core Durable Goods Orders data. Economists expect August Durable Goods Orders to drop -0.3% m/m and Core Durable Goods Orders to fall -0.1% m/m, compared to the prior figures of -2.8% m/m and +1.1% m/m, respectively.

U.S. Existing Home Sales data will be reported today. Economists foresee this figure coming in at 3.96 million in August, compared to 4.01 million in July.

U.S. Wholesale Inventories data will come in today. Economists forecast the preliminary August figure at +0.2% m/m, compared to +0.1% m/m in July.

U.S. Initial Jobless Claims data will be released today as well. Economists estimate this figure will come in at 233K, compared to last week’s number of 231K.

In addition, market participants will hear perspectives from Chicago Fed President Austan Goolsbee, Kansas City Fed President Jeff Schmid, New York Fed President John Williams, Fed Governor Michelle Bowman, Fed Governor Michael Barr, Dallas Fed President Lorie Logan, and San Francisco Fed President Mary Daly throughout the day.

On the earnings front, notable companies such as Costco (COST), Accenture (ACN), Jabil Circuit (JBL), and CarMax (KMX) are set to report their quarterly results today.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.140%, down -0.19%.

The Euro Stoxx 50 Index is down -0.49% this morning, weighed down by weakness in healthcare and construction stocks. Healthcare stocks slumped on Thursday, with Siemens Healthineers AG (SHL.D.DX) dropping over -4% after the U.S. Commerce Department announced new national security investigations into imports of personal protective equipment, medical items, robotics, and industrial machinery. Construction stocks also retreated. European Central Bank data released on Thursday showed that bank lending growth across the Eurozone accelerated further in August, reaching multi-year highs as lower interest rates supported stronger credit flows. Separately, a survey showed that consumer sentiment in Germany is expected to edge up slightly heading into October as expectations for higher incomes improve. Meanwhile, five leading German economic institutes raised their 2025 growth forecast for Europe’s largest economy up to 0.2% on Thursday. On the monetary policy front, Switzerland’s central bank kept its key interest rate at zero on Thursday, ending a streak of six consecutive cuts. In corporate news, H & M Hennes & Mauritz AB (HMB.S.DX) surged over +9% after the fashion retailer topped Q3 profit expectations. 

Germany’s GfK Consumer Climate Index and France’s Consumer Confidence data were released today.

The German October GfK Consumer Climate Index came in at -22.3, stronger than expectations of -23.3.

The French September Consumer Confidence stood at 87, in line with expectations.

Asian stock markets today settled mixed. China’s Shanghai Composite Index (SHCOMP) closed down -0.01%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +0.27%.

China’s Shanghai Composite Index closed just below the flatline today in thin trading ahead of the National Day and mid-autumn holidays next week. Bank and insurance stocks underperformed on Thursday. Also, semiconductor stocks gave up early gains and finished the session little changed. The initial gains were boosted by a report that a major domestic memory chipmaker is developing an advanced chip packaging technology for high-bandwidth memory. At the same time, rare earth stocks climbed after a report said that Group of Seven members and the European Union are considering price floors to promote rare earth production. Meanwhile, Reuters reported that U.S. and Chinese officials are set to meet later today at the U.S. Treasury for staff-level technical talks on trade and economic matters. Also, China urged its companies operating in the U.S. not to apply their domestic price-cutting strategies in the American market, signaling Beijing’s intent to preserve recent trade stability with Washington. In other news, a senior official at China’s central bank said on Thursday that the country will introduce additional measures to support the development of yuan-denominated bonds in Hong Kong and speed up global use of its currency. In corporate news, BYD rose over +1% after data from the European auto lobby ACEA showed that the automaker sold three times as many new cars in the EU last month compared with August 2024, overtaking U.S. rival Tesla.

Japan’s Nikkei 225 Stock Index closed higher and hit a new record high today as a weaker yen boosted demand for export-oriented stocks. Automobile and electronics stocks advanced on Thursday. Bank stocks also gained ground, supported by expectations of a Bank of Japan interest rate hike. BOJ data released on Thursday showed that a leading indicator of Japan’s service-sector inflation picked up in August, reinforcing the central bank’s view that rising labor costs will help keep inflation anchored around its 2% target. Meanwhile, minutes of the July BOJ meeting released on Thursday showed that some board members advocated for resuming interest rate hikes in the future, even as the board unanimously decided to keep borrowing costs unchanged. While some members viewed underlying inflation as still below the BOJ’s 2% target, others judged that inflation expectations were steadily approaching or had already reached 2%. This reinforces the prevailing market view that the BOJ will hike interest rates again this year. In other news, Japan’s 40-year government bond auction saw a demand ratio stronger than its 12-month average, supported by easing concerns about the nation’s public finances. Investors now await Tokyo inflation data for September, scheduled for release on Friday, for fresh clues on the monetary policy path. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -1.31% to 24.10.

The Japanese August Corporate Services Price Index rose +2.7% y/y, weaker than expectations of +2.9% y/y.

Pre-Market U.S. Stock Movers

Chip stocks are moving lower in pre-market trading, with Qualcomm (QCOM) and Micron Technology (MU) dropping nearly -2%.

Cryptocurrency-exposed stocks are sliding in pre-market trading, with the price of Bitcoin down more than -1%. Strategy (MSTR) is down more than -1%. Also, MARA Holdings (MARA) is down about -1%, and Coinbase (COIN) is down nearly -2%.

Oracle (ORCL) fell over -2% in pre-market trading after Rothschild & Co. Redburn initiated coverage of the stock with a Sell rating and $175 price target.

Opendoor Technologies (OPEN) climbed more than +7% in pre-market trading after Jane Street disclosed a 5.9% stake in the company.

Intel (INTC) rose over +3% in pre-market trading after Seaport Research upgraded the stock to Neutral from Sell. Also, Bloomberg News reported on Wednesday that the chipmaker had approached Apple about securing an investment.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Thursday - September 25th

Costco (COST), Accenture (ACN), Jabil Circuit (JBL), CarMax (KMX), Concentrix (CNXC), BlackBerry (BB), Tamboran Resources (TBN), LightPath (LPTH), Legacy Education (LGCY), Armlogi Holding (BTOC).