Thursday's trading: 5 Things to know
Traders will also pay attention to the latest news in the saga between Spirit Airlines, Frontier Holdings and Jetblue as a meeting to vote on a takeover of Spirit gets delayed for another week
Wedbush Securities managing director Daniel Ives says investors are staying away from tech stocks knowing they could go lower.
Here are the key events taking place on Thursday that could impact trading.
JOBLESS CLAIMS: The Labor Department is out with its count of new claims for unemployment benefits for last week. Expectations are for 228,000, little changed from 229,000 the previous week and holding slightly above pre-pandemic levels.
Applying for jobless benefits at the Department of Labor. ( (AP Photo/John Minchillo, File) / AP Newsroom)
Continuing claims, which track the total number of workers collecting unemployment benefits, are anticipated to inch lower for the first time in four weeks to 1.31 million.
INCOME & SPENDING: The Commerce Department releases personal income and spending numbers for May. Economists surveyed by Refinitiv anticipate spending to rise 0.4% month-over-month, less than half the 0.9% pop in April. Personal income, meantime, is expected to rise 0.5% in May, slightly above April’s gain. Core personal consumption expenditures, which is personal spending with volatile food and energy prices removed, are seen rising 0.4% month-over-month, ahead of April’s 0.3% increase.
Cashier hands a customer back change after a transaction at a Target Corp. store in Colma, California. (Photographer: David Paul Morris/Bloomberg via Getty Images / Getty Images)
GDP CONTRACTION DEEPENS GIVING FRESH RECESSION CLUES AMID SOARING INFLATION
The year-over-year change in core PCE, which is the Federal Reserve’s preferred measure of inflation, is expected to slow to 4.8% from 4.9% in April.
MIDWEST BUSINESS: The Institute for Supply Management is out with its Chicago Purchasing Managers’ index for June. The closely watched gauge of Midwest business activity is anticipated to decline to 58.0 after rising unexpectedly to 60.3 in May. A reading above 50 indicates expansion.
MORTGAGE REFINANCING REMAINS DEPRESSED
DEAL VOTE DELAYED: Spirit Airlines on Wednesday pushed back a shareholder vote on Frontier's merger offer for the budget carrier until next week. Spirit shares are up more than 2% in premarket trading. Spirit shareholders had been scheduled to finalize their vote at a special meeting on Thursday. The meeting will now be held on July 8.
A Frontier Airlines airplane taxis past a Spirit Airlines aircraft at Indianapolis International Airport in Indianapolis, Indiana. (Photographer: Luke Sharrett/Bloomberg via Getty Images / Getty Images)
SPIRIT DELAYS VOTE ON FRONTIER DEAL
A delay may suggest that Spirit doesn't have the votes from shareholders to back the deal. Spirit Airlines has been the subject of a bidding war between Frontier Group and JetBlue Airways.
EARNINGS REPORTS: Constellation Brands and Walgreens Boots Alliance will report before the market open and Micron Technology after the bell.