Here are five things you must know for Thursday, August 6:
1. -- Stock Futures Cautious on Jobs Data
U.S. equity futures traded with caution Thursday, while the dollar hovered near a two-year low and gold held near record highs, as investors braced for fresh jobs data and looked for a breakthrough from stimulus talks in Washington.
Democrat and Republican lawmakers are set to continue their week-long negotiations in the nation's capital Thursday, but remain trillions of dollars apart on their respective cornavirus recuse plans as Americans look for financial support following the expiration of emergency unemployment benefits last Friday.
House Speaker Nancy Pelosi told reporters in Washington that she was "optimistic that there is a light at the end of the tunnel" with respect to negotiations with her Republican rivals, but noted that "how long that tunnel is remains to be seen."
U.S. stocks look set to trade cautiously until that time frame is clarified, futures contracts suggest, with yesterday's rally fading into a more cautious session Friday ahead of earnings from Bristol Myers Squibb BMY, ViacomCBS VIACA and Kohl's Corp. KSS.
Contracts tied to the Dow Jones Industrial Average suggest a 22 point dip while those linked to the S&P 500 are indicating a 2.5 pullback.
2. -- Airlines Need More Peanuts
American Airlines (AAL) - Get Report shares surged higher in pre-market trading Thursday, pulling rival carriers Delta Air Lines (DAL) - Get Report and United Airlines (UAL) - Get Report sharply higher, after a Reuters report suggested lawmakers are looking to offer billions more in payroll assistance support to the beaten-down sector.
A group of 16 Republican Senators has backed a plan that would extend the $25 billion of payroll assistance already in place beyond the current September 30 deadline, Reuters reported after seeing a letter signed by, among others, Colorado's Corey Gardner and Florida's Marco Rubio.
Last week, the International Air Transport Association, an industry lobby group, warned it would take until 2024 for global airline passenger traffic to return to pre-pandemic levels, while June data showed the lowest 'load factor' data in industry history.
American Airlines shares were marked 4.14% higher in pre-market trading, indicating an opening bell price of $13.08 each, while Delta gained 2.8% and United bumped 2.5% from last night's close.
3. -- Trump Posts Pulled
Big Tech's ongoing battle with the White House recorded another skirmish late Wednesday after Facebook (FB) - Get Report. Twitter (TWTR) - Get Report and Google's (GOOGL) - Get Report YouTube removed a post by President Donald Trump that suggested children were 'almost immune' to COVID-19.
The post, a video clip from the President's interview on Fox & Friends, violated "policies around harmful COVID misinformation", Facebook said, while both Twitter and YouTube cited similar rules related to misleading information from social media users.
Trump's spokesperson, Courtney Parella, criticized social media companies for attempting to be "arbiters of the truth" and accused them of being biased against the President.
4. -- We Will Roku
Roku shares slumped lower in pre-market trading Thursday after the streaming entertainment platform posted stronger-than-expected second quarter earnings, but warned that a slowdown in ad sales could hit a key portion of its business model.
Roku's chief executive officer, Anthony Wood, told investors on a conference call late Wednesday that the ad industry's outlook is 'highly uncertain' and won't likely recover to pre-pandemic levels 'well into 2021.'
That's a problem for Roku, which sell ads on its free Roku channel, and also charges commissions to companies that stream content into it.
It didn't, however, hurt second quarter sales, which rose 42% from the same period last year to $356.1 million, as coronavirus lockdowns kept people inside, triggering a 3.2 million surge in new customers.
Roku shares were marked 4.5% lower in pre-market trading Thursday, indicating an opening bell price of $158.00 each, a move that trims the stock's year-to-date gain to around 18%.
5. -- Tiger Tees Off
Professional Golf returns for its first major of the year Thursday with the PGA Championship at TPC Harding Park in San Francisco amid questions over the health of Tiger Woods and the potential for defending champion Brooks Koepka to win a third consecutive title.
Woods, 44, will tee-off at 11:33 am Eastern time at Harding Park with a bad back, but also with a shot to become the first player in history to win a Major championship in each of the last four decades.
"My game is better than it was going into that PGA, and hopefully I can put it together this week," he told reporters heading into the season's biggest event, which will be played without fans for the first time ever owing to social distancing rules linked to the coronavirus pandemic.
Koepka, however, remains the bookies' favorite to retain the Wanamaker Trophy on Sunday, completing a hat-trick of wins for the PGA Championships that hasn't been seen since Peter Thomson did it in 1956.
“The way the course sets up eliminates pretty much half the guys,” Koepka said when asked to asses his chances. “And then from there, half of those guys probably won’t play well.'
"Then from there, I feel like mentally I can beat them, the other half.”