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| | US Market |  | | NYSE | AMEX | Dow Jones | Nasdaq |  |  |  |  | | Please click on the images to view our interactive charts | | The major U.S. index futures are pointing to a modestly higher opening on Thursday following the mixed performance seen in the previous session.
The upward momentum on Wall Street comes following the release of a report from the Labor Department showing an unexpected drop in initial jobless claims in the week ended October 28th.
A separate report from the Labor Department showed a bigger than expected increase in labor productivity in the third quarter, with output jumping by much more than hours worked.
Traders are also digesting the Bank of England's decision to raise interest rates for the first time in over a decade.
Later in the day, trading may be impacted by President Donald Trump's expected announcement of his nominee as the next Federal Reserve Chair.
Multiple media sources have reported that Trump intends to nominate Fed Governor Jerome Powell to replace current Fed Chair Janet Yellen.
House Republicans are also expected to unveil the draft of their tax reform legislation after postponing the release by a day due to disagreements about how to offset the cost of the nearly $6 trillion in tax cuts included in the bill.
Stocks turned mixed over the course of the trading session on Wednesday after initially moving to the upside. The major averages reached record intraday highs early in the session before giving back ground.
The major averages ended the day on opposite sides of the unchanged line. While the Nasdaq edged down 11.14 points or 0.2 percent to 6,716.53, the Dow rose 57.77 points or 0.3 percent to 23,435.01 and the S&P 500 inched up 4.10 points or 0.2 percent to 2,579.36.
The mixed close on Wall Street came following the Federal Reserve's announcement of its latest monetary policy decision.
The Fed left interest rates unchanged as widely expected and offered support for the December rate hike that most economists are predicting.
The statement from the central bank said data received since the September meeting indicates the labor market has continued to strengthen and that economic activity has been rising at a solid rate despite hurricane-related disruptions.
The Fed said inflation for items other than food and energy remained soft but continued to predict inflation would stabilize around its 2 percent objective over the medium term.
The central bank also reiterated its expectation that economic conditions will evolve in a manner that will warrant gradual increases in the federal funds rate.
"Given the strong economy and jobs market, inflation pressures gradually building and Fed officials broadening out the reasons behind hiking - such as financial conditions, asset valuations and financial stability issues - we are still sticking to our view of a December rate hike," said ING Senior Economist James Knightley.
He added, "This is 80% priced in by financial markets with the main risk coming from the potential for an economically damaging government shutdown in the absence of an agreement to raise the debt ceiling."
Earlier in the day, payroll processor ADP released a report showing stronger than expected private sector job growth in the month of October.
ADP said private sector employment climbed by 235,000 jobs in October after rising by a downwardly revised 110,000 jobs in September.
Economists had expected an increase of about 200,000 jobs compared to the addition of 135,000 jobs originally reported for the previous month.
The bigger than expected increase came after private sector employment grew at its slowest rate in nearly a year in September.
A separate report from the Institute for Supply Management showed a slowdown in the pace of growth in the manufacturing sector in October.
The ISM said its purchasing managers index fell to 58.7 in October from 60.8 in September, although a reading above 50 still indicates growth in the manufacturing sector. Economists had expected the index to edge down to 59.5.
The bigger than expected pullback by the manufacturing index came after it jumped to its highest level in over thirteen years in the previous month.
Natural gas stocks turned in a strong performance on the day, with the NYSE Arca Natural Gas Index jumping by 2.2 percent. With the gain, the index ended the session at its best closing level in almost a month.
Within the natural gas sector, Devon Energy (DVN) posted a standout gain after reporting third quarter earnings that exceeded analyst estimates.
Notable strength was also visible among other energy stocks even though the price of crude oil for December delivery edged lower.
Steel stocks also showed a strong move to the upside, driving the NYSE Arca Steel Index up by 1 percent. U.S. Steel (X) led the sector higher after reporting better than expected third quarter results.
On the other hand, telecom stocks saw substantial weakness, dragging the NYSE Arca North American Telecom Index down by 2.8 percent. The index ended finished the day at its lowest closing level in well over a year.
Frontier Communications (FTR) posted a steep loss after reporting a narrower than expected third quarter loss but weaker than expected revenues.
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| | US Economic Reports | | | | CADUSD | Oil | Gold | Allbanc |  |  |  |  | | Please click on the images to view our interactive charts | |
A day ahead of the release of the more closely watched monthly jobs report, the Labor Department released a report unexpectedly showing a modest drop in first-time claims for U.S. unemployment benefits in the week ended October 28th.
The report said initial jobless claims edged down to 229,000, a decrease of 5,000 from the previous week's revised level of 234,000.
The dip surprised economists, who had expected jobless claims to inch up to 235,000 from the 233,000 originally reported for the previous week.
With output jumping by much more than hours worked, the Labor Department released a separate report showing a bigger than expected increase in U.S. labor productivity in the third quarter.
The report said labor productivity surged up by 3.0 percent in the third quarter after climbing by 1.5 percent in the second quarter. Economists had expected production to increase by 2.4 percent.
The Labor Department also said unit labor costs rose by 0.5 percent in the third quarter after edging up by 0.3 percent in the second quarter. The uptick in costs matched economist estimates.
At 12:30 pm ET, New York Fed President William Dudley is scheduled to deliver closing remarks at the Alternate Reference Rates Committee Roundtable event in New York.
Atlanta Fed President Raphael Bostic is due to participate in "The Vital Role of Government Statistics" panel at the Association for Public Policy Analysis and Management's 39th Annual Fall Research Conference in Chicago at 6:15 pm ET.
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| | Stocks In Focus |
Shares of GoPro (GPRO) are moving sharply lower in pre-market trading after the high definition camera maker reported better than expected third quarter results but provided disappointing guidance for the current quarter.
Cybersecurity company FireEye (FEYE) is also likely to come under pressure after reporting a narrower than expected third quarter loss but forecasting another loss for the fourth quarter.
Shares of Tesla (TSLA) may also move to the downside after the electric car maker reported a wider than expected third quarter loss.
On the other hand, shares of Electro Scientific Industries (ESIO) are spiking higher in pre-market trading after the semiconductor testing equipment maker reported a fiscal second quarter profit compared to a year-ago loss.
Biopharmaceutical company Neurocrine Biosciences (NBIX) is also likely to see early strength after reporting a much narrower than expected third quarter loss on revenues that exceeded estimates.
Shares of SunPower (SPWR) are also moving to the upside in pre-market trading after the solar products and services company reported better than expected third quarter results. |
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| | Europe markets |
European stocks have turned mixed on the day following the Bank of England's announcement to raise interest rates for the first time in over a decade.
While the U.K.'s FTSE 100 Index has advanced by 0.7 percent, the German DAX Index and the French CAC 40 Index are down by 0.1 percent and 0.2 percent, respectively.
The BoE voted by a majority of 7 to 2 to increase the bank rate by 0.25 percentage points to 0.5 percent, as was widely anticipated.
The rate increase largely reflected concerns about the outlook for inflation, which soared to a five-year high of 3 percent in September.
In his subsequent press conference, BoE Governor Mark Carney said two additional rate hikes are needed to in order to get inflation to return to target.
On the economic front, the manufacturing Purchasing Managers' Index for the eurozone rose to an 80-month high of 58.5 in October from 58.1 in September, final data from IHS Markit showed. Nonetheless, the reading was slightly below the initial estimate of 58.6.
Credit Suisse Group shares have jumped after the Swiss banking giant reported a significantly higher profit in its third quarter with strong wealth management results.
Hugo Boss has also soared as the German luxury fashion house raised its 2017 sales guidance after reporting a slight increase in third quarter revenue.
Meanwhile, Sanofi shares have fallen after the French drug giant reported a decline in third quarter profits but confirmed its full-year 2017 guidance for business earnings per share to be broadly stable at constant exchange rates.
Playtech shares have plummeted in London after the online casino games giant issued a profit warning, citing a slowdown in certain parts of Asia and problems with the Sun Bingo contract.
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| | Asia markets | | | | USDCAD | USDEUR | USDGBP | USDJPY |  |  |  |  | | Please click on the images to view our interactive charts | |
Asian stocks gave up early gains to end mostly lower on Thursday as investors awaited the announcement of the next Fed chief as well as Friday's U.S. jobs report.
The dollar pulled back in Asian trading as lingering uncertainty about the U.S. tax bill overshadowed a mildly hawkish Fed statement.
Chinese stocks fell slightly on concerns over slowing growth and tighter liquidity before year-end. The benchmark Shanghai Composite Index eased 12.77 points or 0.4 percent to finish at 3,383.14, while Hong Kong's Hang Seng Index fell 75.42 points or 0.3 percent to 28,518.64.
Australian shares finished marginally lower, dragged down by financials after National Australia Bank said it expects to take a restructuring charge of A$500 to A$800 million in the first half of 2018. The benchmark S&P/ASX 200 Index dipped 6.10 points or 0.1 percent to 5,931.70, while the broader All Ordinaries Index closed little changed at 6,002.20.
NAB fell 2.8 percent after forecasting a rise in costs, and the other three banks ended down between 0.3 percent and 0.8 percent. Higher metal prices helped lift miners, with BHP Billiton, Fortescue Metals Group, Rio Tinto and South32 climbing 2-4 percent.
Energy stocks Woodside Petroleum and Oil Search rose more than 1 percent each. Building materials supplier Boral rallied 3.8 percent after lifting the outlook for its Australian business.
On the economic front, Australia's foreign trade surplus increased more than expected in September, while the total number of building approvals increased for the second straight month, separate reports showed.
Seoul stocks closed lower on profit taking after four days of gains. The benchmark Kospi dropped 10.11 points or 0.4 percent to 2,546.36, dragged down by technology and insurance stocks. SK Hynix and Samsung Life Insurance both ended down over 2 percent.
Meanwhile, Japanese shares hit a new 21-year high even as overall gains remained modest ahead of a long holiday weekend. The Nikkei 225 Index climbed 119.04 points or 0.5 percent to 22,539.12, while the broader Topix Index closed 0.4 percent higher at 1,794.08.
Honda Motor soared 5.2 percent after the automaker raised its full-year operating profit forecast. Sony rallied 2.8 percent to extend Wednesday's gains after forecasting a record profit. Panasonic lost 3.3 percent on concerns over Tesla's Model 3 production bottlenecks.
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| | Commodity, Currency Markets |
Crude oil futures are slipping $0.13 to $54.17 a barrel after edging down $0.08 to $54.30 a barrel on Wednesday. An ounce of gold is trading at $1,275.50, down $1.80 compared to the previous session's close of $1,277.30. On Wednesday, gold climbed $6.80.
On the currency front, the U.S. dollar is trading at 114.12 yen compared to the 114.18 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1662 compared to yesterday's $1.1619.
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