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Stock futures fall slightly as investors dwell on health of the economy

Stock futures fall slightly as investors dwell on health of the economy

Investor morale was driven down by economic fears, which knocked down U.S. stock futures on Wednesday night.

Futures for the Dow Jones Industrial Average fell 74 points, or 0.2 percent, on Monday. Futures on the S&P 500 and the Nasdaq 100 were both dopped 0.2 percent.

Chewy’s stock jumped over 20% in after-hours trading after the business reported good quarterly results. PVH, a clothing retailer, had its stock rise more than 4% as a result of the earnings.

Hewlett Packard Enterprise, on the other hand, slumped more than 6% after reporting earnings and revenue that were both somewhat below expectations.

In regular trading, stocks began June with losses in rough conditions. The Dow Jones Industrial Average fell 176.89 points or 0.5 percent. The S&P 500 was down roughly 0.8 percent, while the Nasdaq Composite was down 0.7 percent.

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The mood was gloomy as JPMorgan CEO Jamie Dimon warned of an impending economic “storm” brought on by the Federal Reserve and the conflict in Ukraine. “We’re going to be very careful with our financial sheet,” he stated.

Furthermore, new data reveals that the economy is still sweltering. The number of job postings in April fell substantially from the previous month, according to data released Wednesday, but the figures show that the labor market remains tight. The Institute for Supply Management also reported that its manufacturing PMI for May was 56.1, up from 55.4 the month before.

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“To begin the month of June, the market remained turbulent with a bearish bias,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management. “Higher oil costs and consumer concerns in the Fed’s Beige Book economic report underline inflation as a major issue.”

Indeed, according to the central bank’s assessment, the United States has had just “slight or modest” economic growth in the last two months.

“As we wrap up the second quarter, our outlook is cautious,” Haworth added. “Risks for investors moving forward include global central bank uncertainty and the pace of tighter monetary policy, still-tight global energy and agriculture markets — which might lead to higher prices — and headwinds for corporate earnings growth.”

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This week’s retail profits will be reported by Designer Brands, Lululemon Athletica, and RH on Thursday. CrowdStrike and Okta, two major tech companies, are also expected to participate.

Investors are also looking at employment data to see how firms and employees are dealing with inflation. On Thursday, ADP will release statistics from its national employment report at 8:15 a.m. Dailion, just before the Labor Department reports weekly jobless claims.

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