Thursday’s trading session is set to be dynamic, driven by significant corporate news and economic data. Investors will be watching Apple‘s potential price hikes and Moderna‘s FDA pitch for its flu shot, alongside Kroger‘s earnings report. Additionally, critical jobless claims data could swing market sentiment, while the robust performance of major banks contrasts sharply with declines in oil and traditional stock exchanges like Nasdaq and CME Group.
As Wall Street reels from yesterday's significant downturn, with the Dow Industrials shedding over 500 points, investors are keenly eyeing a handful of key stories poised to dictate Thursday's trading session. From tech giants to pharmaceutical breakthroughs and crucial economic indicators, here’s a deep dive into what’s likely to move the market.
Apple Poised for Price Hikes Amid Rising Chip Costs
The tech titan Apple is reportedly gearing up to increase prices, a direct response to the surging costs of memory chips. CNBC TV's MacKenzie Sigalos is set to provide ongoing coverage throughout Thursday. Despite hitting earlier highs this month, Apple shares are currently down 7% from that peak, though they maintain a robust 16% gain over the past three months.
Moderna's Flu Shot Spotlight at FDA Committee
Pharmaceutical giant Moderna will be in the spotlight as it presents its case for the mRNA flu shot before a U.S. Food and Drug Administration (FDA) committee. CNBC TV's Angelica Peebles will deliver the latest updates. The company's stock has shown impressive momentum, surging 11.6% on Wednesday alone, and boasts nearly a 24% gain in just three days, topping 30% for June.
Critical Jobless Claims Data on Deck
Economists and traders alike will be glued to "Squawk Box" at 8:30 a.m. ET for the live release of the latest jobless claims figures. The Dow Jones consensus estimate anticipates 225,000 claims. Intriguingly, prediction market Kalshi indicates 56% believe the reading will exceed 225,000, with 30% forecasting a number above 230,000, suggesting potential for market surprise.
Kroger's Earnings Report Before the Bell
Grocery stalwart Kroger is scheduled to release its quarterly results before the market opens on Thursday. These numbers, which will be prominently featured on "Squawk Box," come at a time when Kroger's stock has faced headwinds, down 16% in the last three months and off 19% from its March high.
Big Banks Reach New Heights
In a notable display of strength, several major banks hit new highs on Wednesday. Bank of America, which achieved an all-time high, is up 9.5% in June. Citigroup scaled levels not seen in 18 years, marking a 14% rise this month. Goldman Sachs also saw new highs. JPMorgan notched an all-time high, gaining 11.4% in June, while Morgan Stanley reached its own all-time high, up 8% this month. This robust performance signals strong investor confidence in the financial sector.
Oil Markets See Significant Slide
The oil market is experiencing a notable downturn, with Brent crude falling below its 200-day moving average on Thursday for the first time since February 3rd. Both Brent and West Texas Intermediate (WTI) have plummeted over 27% in the past month. The broader S&P Energy sector is down 14% from its March 27th high, while energy giants ExxonMobil and Chevron are approximately 20% off their March 30th highs. Morgan Brennan will pick up this story Thursday morning at 5 a.m.
Exchanges Under Pressure from Prediction Markets
Major exchanges faced steep declines on Wednesday amidst speculation that the rise of prediction markets, offering perpetual futures and other innovative products, could siphon off some of their traditional business. Nasdaq dropped 6.7%, now down 18% from its January high. Intercontinental Exchange (ICE) fell 4.7%, off 29% from its August high. CME Group saw a 3.5% decline, bringing it 23% down from its March high. Adding to the news, longtime CEO Terrence Duffy announced his plan to step down early next year, though he committed to active involvement during the transition. CBOE fell approximately 4%, sitting 31% below its March 19th high.
Comcast and Salesforce Grapple with Lows
The cable and software sectors are seeing significant challenges. Comcast shares hit lows on Wednesday not seen since April 2014 and are down 35% from its previous peak last July. Similarly, Salesforce stock is now trading at levels not witnessed since January 2023, having tumbled 44% since reaching a high last July.
