The Day Ahead: Jobless Claims, Bond Auction, Fed Speakers

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Equity futures suggest sentiment is mixed ahead of the open on Thursday after a broad and steady climb in the markets yesterday pushed the S&P 500 up 1.37%.

Ninety minutes before the opening bell, Dow futures are off 12 points to 10,864 and S&P 500 futures are up 1.00 points to 1,170.50. The 2 year Treasury note yield is unchanged at 0.867% and the benchmark 10 year note is less than 1 basis point higher at 3.577%. Three month LIBOR is up  to 0.43588% vs. 0.43019% on Wednesday. The Fannie Mae 4.5 MBS coupon is also unchanged at 101-00. Light crude oil is down 1.10% to $74.82, and Spot Gold is down 0.56% to $1,235.70.

In earnings today, markets will see first-quarter figures from Nordstrom , Kohls, Select Medical, NVIDIA, and Urban Outfitters.

Key Events Today:

8:30 ― Initial Jobless Claims have declined for the past three consecutive weeks, including a 7k improvement to 444,000 for the period ending May 1. Economists generally say that the survey must come in below 450k for a sustained period to indicate overall labor growth in the economy. With the the moving four-week average at 458,500, we’re not there yet, but it’s close. 

“Initial jobless claims declined moderately last week and look to be on a gradual downward slope,” said economists at Nomura Global Economics. “Although the current level of initial claims remains historically high, we believe it is consistent with positive private sector employment growth.”

9:00 ― Ben Bernanke, chairman of the Federal Reserve, gives a Q&A session with Philadelphia Fed Deputy Chair Jeremy Nowak at the bank's conference on community development.

9:00 ― Donald Kohn, vice chairman of the Federal Reserve, speaks on a panel to discuss the “lender of last resort” at the Centre for Monetary and Financial Economics Conference in Ottawa.

12:00 ― Narayana Kocherlakota, president of the Minneapolis Fed, speaks to Eau Claire business leaders in Altoona, Wisconsin.

12:30 ― Ben Bernanke gives another Q&A session, this time with Philadelphia Fed Deputy Chair Jeremy Nowak, at the bank's conference on community development.

Treasury Auctions:

 

  • 1:00 ― 30-Year Bonds