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Tesla Stock Active as Wall Street Futures Gain; Ford, Uber and Roku in Focus

Weekly jobless claims could trigger premarket moves head of Friday's nonfarm payroll report as global stocks hover near record highs.

The Thursday Market Minute

  • Global stocks mixed as earnings continue to drive European gains while Delta variant infections rattle sentiment in Asia.
  • Benchmark 10-year note yields hold near 1.2% following hawkish comments from Fed Vice Chair Richard Clarida amid a softer-than-expected ADP jobs report.
  • President Joe Biden to sign executive order targeting a 50% EV production rate for American carmakers by 2050.
  • Uber shares tumble on wider Q2 loss despite record high bookings of $22 billion.
  • Oil prices slide as Delta infections raise demand questions and EIA reports a surprise 3.6 million increase in domestic crude stocks.
  • U.S. equity futures suggest a modestly firmer open on Wall Street ahead of second quarter earnings from Moderna, Kellog and ViacomCBS as well as weekly jobless claims data at 8:30 am Eastern time.

Wall Street futures edged higher Thursday, while bond yields snapped-backed from yesterday's rally on hawkish comments from the Federal Reserve, as investors remain laser-focused on jobs and earnings data heading into Friday's crucial payroll report. 

Stocks were little-changed after the Commerce Department noted that weekly jobless claims fell to 14,000 to 385,000 for the period ending July 31. Continuing claims, however, fell below the 3 million mark for the first time since the start of last year's pandemic, sliding to 2.93 million.

Fed Vice Chairman Richard Clarida rattled markets yesterday with a series of hawkish comments -- including his view that bond purchase tapering should start later this year -- that sparked a 7 basis point move in benchmark 10-year Treasury note yields and clouded a much weaker-than-expected reading of private sector job growth from payroll processing group ADP.

The affect of Clarida's comments, which also teed-up rate hikes at the end of next year, are likely to linger over markets during the Thursday session as investors prepare for Friday's non-farm payroll release that could either answer or raise difficult questions linked to the pace of economic growth over the second half of the year. 

Futures contracts tied to the Dow Jones Industrial Average suggest an 85 point opening bell gain for the benchmark while those linked to the S&P 500 are priced for a 10 point bump to the upside. 

Nasdaq Composite futures, meanwhile, are looking at a modest 30 point opening bell gain as benchmark 10-year note yields hold at 1.192% in overnight trading heading into the opening bell.

In the meantime, a spate of single-stock headlines are likely to spark activity at the start of trading, with Ford  (F) - Get Ford Motor Company Report shares rising 2.25% ahead of the singing of an executive order by President Joe Biden later this morning that sets a 50% target for zero-emissions cars from American automakers by 2030.

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Tesla  (TSLA) - Get Tesla Inc Report shares were also moving higher, rising 1.1% to $718.75 each even as founder and Elon Musk lamented that his clean-energy carmaker wasn't invited to the White House event.

Fastly  (FSLY) - Get Fastly, Inc. Class A Report shares were also active, but plunging 21.1% after the content delivery network provider posted a wider-than-expected second quarter loss of 51 cents per share and missed Street revenue forecasts following its role at the center of June's global internet outage

Roku  (ROKU) - Get Roku, Inc. Class A Report was also sharply lower, with shares falling 8.9% to $382.99 each after the streaming content platform forecast weaker-than-expected current quarter earnings as customers returned to outdoor activities amid loosening pandemic restrictions

That theme failed to support ride-sharing platform Uber Technologies  (UBER) - Get Uber Technologies, Inc. Report, however, as the group posted a wider-than-expected $509 million loss even as gross bookings hit a record high of $22 billion. Uber shares were marked 3.9% lower at $40.17 each. 

Etsy  (ETSY) - Get Etsy, Inc. Report was another pre-market faller, with shares down 12.25% at $177.34 each after the online marketplace group posted weaker-than-expected second quarter earnings, and a disappointing near-term outlook linked to the headwinds of post-pandemic retail openings around the country.

Away from equities, U.S. oil prices extended declines below $70 a barrel Thursday as traders continue to price in the impact of travel and business restrictions in Asia amid the surge in Delta-variant coronavirus infections and yesterday's surprise 3.6 million barrel increase in domestic crude stocks reported by the Energy Department.

WTI futures for September delivery were marked 54 cents lower at $68.69 each while Brent contracts for October fell 39 cents to $70.77 per barrel.

In overseas markets, a busy earnings session, highlight by June quarter reports from Adidas, Siemens and Bayer, helped lift regional shares in the opening hours of trading in Frankfurt, while U.K. stocks held steady ahead of today's Bank of England rate decision in London at 7 am Eastern time.

Overnight in Asia, the region-wide MSCI ex-Japan index was marked 0.33% lower heading into the final hours of trading while Japan's Nikkei 225 closed 0.52% higher at 27,728.12 points.