Coffee With Greta: No Santa In Sight For Wall Street
DJIA Futures: +167 (+0.5%)
SPX Futures: +29 (+0.8%)
NASDAQ Futures: +116 (+1.1%)
Good morning friends!
Futures are higher as stocks rebound but traders’ hopes for a Santa rally fizzle out.
Let’s get right to it!
Unemployment Claims Jump
Weekly jobless claims rose more than expected last week.
The Labor Department reported 225,000 Americans filed initial claims for unemployment benefits.
That was up by 9,000 from the previous week and higher than economists’ expectations for 223,000.
Continuing claims also rose by 41,000 to 1.71 million in the week ending December 17.
That’s the highest level since February and a sign that it’s taking more time for laid off workers to find new jobs.
Tesla Rebounds
Tesla (TSLA) shares are rising 5.2% ahead of the open, extending the rebound that started Wednesday afternoon.
Wednesday was the first positive close for the stock in eight sessions.
But TSLA is still on track for its worst year ever.
CNBC obtained an email that CEO Elon Musk sent to employees on Wednesday telling them not to be “too bothered by stock market craziness.”
He said Tesla needs to “demonstrate continued excellent performance,” and “long-term, I believe very much that Tesla will be the most valuable company on Earth!”
Apple Bounces Back
Apple (AAPL) shares are up 1.5% in premarket trade after the stock closed at a new 1.5 year low on Wednesday.
Year-to-date, AAPL is down 29% as the tech sector has been hit hard in the 2022 bear market.
So far in December, the iPhone maker’s stock is down nearly 15%.
Oil Prices Fall As Covid Cases Spike In China
Oil prices are rising this morning as surging Covid cases in China dampen hopes for higher demand.
West Texas Intermediate crude futures are down 0.9% to $78 bbl while Brent crude futures are down 0.9% to $82.50 bbl.
As China has relaxed its Covid restrictions, the country has seen a surge in cases.
The latest outbreak has prompted five countries including the U.S. to enact a testing requirement for travelers from China.
In Case You Missed It
- Pending home sales fell more than expected in November. The National Association of Realtors reported pending sales dropped 4% last month vs expectations for a 1.8% decline. That was the sixth straight monthly drop and the lowest level of contract signings since April 2020. Pending sales were down a sharp 37.8% compared to November 2021.