U.S. equity futures signaled a positive open on Thursday, buoyed by a series of stronger-than-expected economic reports that lifted sentiment despite recent volatility and mixed prior session results.
Weekly jobless claims data surprised to the downside, with the Labor Department reporting a decline to 236,000 for the week ending June 21. This was 10,000 fewer than the previous week and defied forecasts that had anticipated no change from the initially reported 245,000.
Durable goods orders also delivered a strong reading. According to the Commerce Department, orders surged by 16.4% in May, recovering sharply from a revised 6.6% drop in April and surpassing economists’ expectations for an 8.5% rebound. Excluding transportation, orders rose 0.5%, indicating continued demand across key industrial segments.
However, the outlook wasn’t entirely rosy. Revised GDP figures revealed the economy shrank more than earlier estimated in Q1, with real GDP falling 0.5% instead of the previously reported 0.2%. The downgrade was attributed to weaker consumer spending and lower export activity, although a decline in imports partially softened the blow.
Markets had rallied earlier in the week but lost steam on Wednesday. The Nasdaq still managed to advance 0.3% to close at a four-month high of 19,973.55. The S&P 500 was flat at 6,092.16, while the Dow fell 0.3% to 42,982.43. The initial optimism faded amid cautious sentiment following reports of a ceasefire between Israel and Iran, leading some investors to lock in recent gains.
New housing data added to the mixed signals. Sales of new homes fell sharply in May, dropping 13.7% to a seasonally adjusted annual rate of 623,000, following a 9.6% gain in April. The figure missed expectations for a more moderate 7.1% decline, adding pressure to housing-related stocks.
In sector performance, real estate and homebuilding stocks came under pressure. The Dow Jones U.S. Real Estate Index slid 2.4%, and the Philadelphia Housing Sector Index lost 1.9%. Other areas of weakness included oil services, airlines, and natural gas. Conversely, networking stocks showed relative strength, helping support the tech-heavy Nasdaq.
Despite some soft spots in economic activity, optimism from strong manufacturing data and cooling jobless claims appeared to support the broader market tone heading into Thursday’s session.