* Futures down: Dow 58 pts, S&P 8.5 pts, Nasdaq 37.5 pts
By Tanya Agrawal
July 6 (Reuters) – U.S. stock index futures were lower on
Thursday ahead of data on trade and private sector hiring, a day
after the Federal Reserve’s policy minutes failed to provide a
clear picture of future interest rate increases.
* Fed policymakers were increasingly split on the outlook
for inflation and how it might affect the future pace of
interest rate hikes, according to minutes of the Fed’s last
policy meeting released on Wednesday.
* The Fed’s preferred measure of underlying inflation
slipped to 1.4 percent in May and has run below the 2 percent
target for more than five years now.
* The minutes revealed a few officials viewed equity prices
as high when compared to standard valuation measures, even
though earnings growth has been robust.
* The S&P 500 has been trading at about 18 times earnings
estimates for the next 12 months, compared with the long-term
average of 15 times.
* The ADP National Employment Report is expected to show
that private employers added 185,000 jobs in June, down from
253,000 jobs in May. The data is expected at 8:15 a.m. ET (1215
GMT) and comes before the more comprehensive non-farm monthly
jobs data due Friday.
* Weekly jobless claims are expected to have dropped to
243,000 from 244,000 the week before. Separately, ISM is likely
to report its non-manufacturing activity index for June slipped
to 56.5 from 56.9 the month before.
* The Commerce Department is likely to report U.S. trade
deficit of $46.2 billion in May, compared with $47.6 billion in
* Fed Governor Jerome Powell and Fed Vice Chair Stanley
Fischer are scheduled to make appearances later in the day.
* A steep drop in oil prices dragged energy shares lower and
kept the Dow and S&P 500 in check on Wednesday, while the Nasdaq
was buoyed by gains in tech stocks.
* Shares of Tesla were down 2.6 percent in
premarket trading after the luxury electric carmaker’s Model S
did not get the top score in certain tests by the Insurance
Institute for Highway Safety.
* BeiGene jumped 9 percent after biopharmaceutical
company Celgene said it would buy a stake in the
* Costco rose 3 percent after the retailer reported
a rise in its June sales number.
Futures snapshot at 7:05 a.m. ET:
* Dow e-minis were down 58 points, or 0.27 percent,
with 23,307 contracts changing hands.
* S&P 500 e-minis were down 8.5 points, or 0.35
percent, with 137,224 contracts traded.
* Nasdaq 100 e-minis were down 37.5 points, or 0.66
percent, on volume of 28,616 contracts.
(Reporting by Tanya Agrawal in Bengaluru; Editing by Anil