Day Ahead: 3 Things to Watch for June 11
Investing.com
Published Jun 10, 2020 04:10PM ET
Updated Jun 10, 2020 04:20PM ET
By Liz Moyer
Investing.com -- Stocks wobbled on Wednesday as the Federal Reserve announced no change in interest rates and plans to keep them low through 2022.
The Dow Jones Industrial Average and S&P 500 both fell, while the NASDAQ Composite closed above 10,000 for the first time.
The Fed pointed to the risks to the economy from the Covid-19 pandemic and related business shutdowns. Though states and cities have begun to loosen restrictions on business and individual activity, the recovery will be a long process. Economic output is projected to fall 6.5% this year, the Fed said, before rebounding 5% next year.
More data on jobs and manufacturing activity are expected on Thursday, as well as an earnings report from Adobe Systems Incorporated (NASDAQ:ADBE), among other companies.
Here are three things that could affect markets tomorrow.
1. Jobless Claims Expected to Show Continued Improvement.
Initial jobless claims will be released at 8:30 AM ET (12:30 GMT) and are estimated to be 1.55 million for the week, down from 1.87 million the prior week, as the overall trend on jobs continues to improve with the reopening of businesses.
Unemployment is still above 13%, according to the government's most recent report, the highest since the post-World War II era. Continuing jobless claims are estimated to come in near 20 million, down from 21.5 million the previous week.
2. Producer Price Index Data Also Being Released.
The Producer Price Index comes out Thursday at 8:30 AM ET (12:30 GMT). It measures the change in the price of goods sold by manufacturers and is a leading indicator of consumer price inflation. Analysts tracked by Investing.com estimate the PPI will rise 0.1% for the month of May, a reversal of the 1.3% decline the previous month.
3. Adobe Earnings Scheduled Amid Tech Rally.
Graphics software maker Adobe reports earnings on Thursday. Analysts are expecting profit of $2.32 a share on revenue of $3.1 billion. Adobe shares rose in the days before the report. Wall Street is awaiting Adobe's comments on how the Covid-19 pandemic and related business shutdowns affected its cloud computing business, something management warned about in their prior quarter earnings.
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