Stock Futures Dip as Stronger U.S. Economy Augers Tapering
NEW YORK ( TheStreet) -- Stock futures were dipping Thursday as better-than-expected U.S. economic growth heightened expectations that the Federal Reserve will begin to curb its bond-buying stimulus measures that have fueled equity markets for close to two years.
Futures for the S&P 500 were slipping 0.75 points, or 1.36 points below fair value, to 1,631.5. Stocks rose Wednesday as concern eased about the potential magnitude of international military action against Syria. Futures for the Dow Jones Industrial Average were up 45 points, or 47.49 points above fair value, to 14,851. Futures for the Nasdaq were trading ahead by 12.5 points, or 9.48 points above fair value, to 3,080.75.
The Wall Street Journal reported Wednesday that the two companies had rekindled discussions in a deal that likely would cost Verizon well more than $100 billion. Vodafone said Thursday there is no certainty an agreement will be reached.
Analysts were expecting Guess? to post earnings of 36 cents a share on revenue of $622.9 million.
The second estimate for U.S. second-quarter gross domestic product showed a rise of 2.5%, up from the advance estimate of a 1.7% rise and better than the 2.2% growth expected by economists, the Bureau of Economic Analysis reported.
On the labor market front, initial jobless claims for the week ended Aug. 24 fell by 6,000 to 331,000, according to the Labor Department. Economists on average were expecting claims of 332,000. Meantime continuing claims for the week of Aug. 17 decreased by 14,000 to 2.989 million versus the average economist estimate of 2.98 million.
President Barack Obama told PBS NewsHour Wednesday that the conclusion is that the Syrian government definitely carried out chemical weapons attacks against civilians in the country, and therefore there needs to be "international consequences." However, he hasn't yet decided on moving forward with military action in Syria.
Richmond Federal Reserve Bank President Jeffrey Lacker will speak about the history of the Fed in Newport News, Va., at 2 p.m.
At 7:45 p.m., St. Louis Fed Bank President James Bullard is expected to speak about the economy and monetary policy in Tupelo, Miss.