U.S. equity futures are little changed Thursday as investors balance a modest retreat in Treasury yields against oil prices above $90, continuing U.S.-Iran tensions and Friday’s employment report. At 5:42 a.m. ET, Dow futures were up 0.17%, S&P 500 futures were up 0.05% and Nasdaq 100 futures were down 0.04%. Wednesday, the Dow gained 0.56%, the S&P 500 rose 0.46%, the Nasdaq advanced 0.45% and the Russell 2000 climbed 1.1%, snapping part of the market’s recent risk-off move.
Rates provided some relief Wednesday, with the 2-year Treasury yield falling 3 basis points to 4.37%, the 10-year slipping 1 basis point to 4.78% and the 30-year declining 1 basis point to 5.26%. The 10-year is down another roughly 3 basis points near 4.77% this morning. Money markets assign about a 60% probability of a September Fed rate increase, compared with less than 40% a week ago. The DXY closed Wednesday at 99.59 and has weakened toward 99.25, while the yen is extending its sharp two-day rally. The euro is near $1.161 and sterling around $1.349.
October WTI gained 0.28% Wednesday to $90.47 but is modestly softer this morning as markets assess the latest U.S.-Iran military exchanges and limited tanker traffic through the Strait of Hormuz. Brent is near $94.6. December gold gained 0.90% Wednesday to $4,435.90, while spot gold is around $4,436 this morning as softer yields and the dollar offset the continued prospect of tighter Fed policy.
Wednesday’s ADP report showed private payrolls increasing just 38,000 in August, below the 48,000 consensus and following a revised 46,000 increase in July. Manufacturing lost 17,000 jobs, while education and health services added 45,000. Factory orders rose 0.9% in July. Today brings weekly jobless claims, the July trade balance and revised second-quarter productivity at 8:30 a.m. ET, along with remarks from Fed Governor Christopher Waller. The August ISM Services Index follows at 10:00 a.m. Friday’s employment report is expected to show roughly 56,000 new nonfarm jobs and a 4.1% unemployment rate.
Sector Highlights
Sector performance broadened Wednesday. Materials led with a 1.53% gain, followed by Communication Services +1.16%, Health Care +0.79% and Financials +0.78%. Energy and Technology each gained 0.33%, Consumer Staples and Utilities each rose 0.19%, Consumer Discretionary gained 0.19% and Industrials were nearly unchanged at +0.02%. Real Estate was the only sector lower, falling 0.78%. Breadth was constructive, with advancers leading 1.68:1 on the NYSE and 1.96:1 on the Nasdaq.
Information Technology
- Broadcom (AVGO -2.3% premarket) is lower despite another powerful AI quarter. Fiscal third-quarter AI-chip sales more than tripled to $16.7 billion, helping total revenue reach $29.59 billion versus $29.36 billion expected, while adjusted EPS of $3.32 topped the $3.24 consensus. Broadcom raised its fiscal 2027 AI-chip revenue forecast to approximately $115 billion from more than $100 billion and expects that figure to reach roughly $230 billion in fiscal 2028. The pressure on the shares reflects fourth-quarter revenue guidance of approximately $34.8 billion, slightly below the $35.03 billion consensus and a very high expectations bar across AI infrastructure.
- Snowflake (SNOW +23.8% premarket) is surging after raising its fiscal 2027 product-revenue forecast to $6.07 billion from $5.84 billion. Second-quarter product revenue increased 37%, with management estimating that AI offerings accounted for roughly half of the acceleration in growth. Snowflake’s Cortex Code assistant now has more than 9,100 accounts, while its CoWork enterprise chatbot has expanded to approximately 5,800 accounts. At least 22 brokerages raised their price targets following the results.
- Hewlett Packard Enterprise (HPE -4% to -5% premarket) is lower despite record fiscal third-quarter results. Revenue increased 34% to $12.2 billion, adjusted EPS reached $1.11, and Cloud & AI revenue rose 25.4% to $9.0 billion. Networking revenue jumped nearly 75%, helped by the Juniper acquisition. HPE raised fiscal 2026 revenue-growth guidance to 34%-37% and now expects fiscal 2027 revenue growth of 13%-17%, but the shares are giving back some of their substantial year-to-date advance following the report.
- NetApp (NTAP -8% premarket) is falling despite beating fiscal first-quarter estimates. Revenue rose about 30% to $2.03 billion versus $1.84 billion expected, while adjusted EPS of $2.58 exceeded the roughly $2.12 consensus. NetApp also raised its fiscal-year outlook, but weaker cash generation, higher restructuring expenses and a sizable increase in inventories are overshadowing the headline beat.
- Apple (AAPL) faces a £2 billion, or roughly $2.7 billion, lawsuit in the UK brought on behalf of app developers over its App Tracking Transparency rules. The suit alleges Apple imposed stricter tracking restrictions on third-party developers than on its own services, benefiting its advertising ecosystem. Apple has consistently argued that the rules give users greater control over privacy and tracking.
- Ciena (CIEN) reports before the open, while Zscaler (ZS), DocuSign (DOCU), Samsara (IOT) and Guidewire (GWRE) report after the close. The group will provide additional reads on AI-driven networking demand, cybersecurity budgets, enterprise software spending and whether the strength seen at Snowflake is extending more broadly across software.
Consumer Discretionary
- Five Below (FIVE +6% premarket) is rallying after increasing its full-year outlook for the second time this year. Second-quarter net sales jumped 22.9% to $1.26 billion, comparable sales increased 14.1%, and adjusted EPS reached $1.68. Five Below now expects fiscal 2026 sales of $5.63-$5.71 billion and adjusted EPS of $9.83-$10.31, up from prior guidance of $8.65-$9.05. The company also authorized a new $600 million share-repurchase program.
- Lululemon Athletica (LULU) reports after the close with consensus estimates near $1.80-$1.82 of EPS and $2.46 billion of revenue. The stock has fallen sharply this year as weaker U.S. demand, increased promotional activity, tariffs and competition from brands including Alo Yoga and Vuori pressure the company. Lululemon cut its annual revenue and earnings forecasts in June, putting particular attention on North American comparable sales and new management’s turnaround plans.
- Tesla (TSLA) remains in focus ahead of its Cybercab event in Austin after today’s close. Investors are looking for details on the production timeline, regulatory approval and potential economics of Tesla’s purpose-built autonomous vehicle and broader robotaxi network.
Health Care
- Ultragenyx Pharmaceutical (RARE -45% premarket) is plunging after experimental drug apazunersen failed the primary endpoint in a late-stage trial for Angelman syndrome, a rare genetic neurodevelopmental disorder. The drug failed to demonstrate a statistically significant improvement in cognition or overall development compared with placebo, dealing a major setback to one of the company’s important pipeline programs.
Energy
- Chevron (CVX) remains in focus after signing agreements to expand its Venezuelan operations as part of a broader U.S.-backed effort to rebuild the country’s oil industry. Chevron plans to invest more than $7 billion and target production of roughly 600,000 barrels per day, potentially doubling its current Venezuelan output. The expansion provides Chevron with additional long-duration reserves but also represents a potential medium-term source of incremental global supply.
- Exxon Mobil (XOM) is also linked to Washington’s effort to expand Venezuelan production after President Trump said the company was among U.S. producers preparing to invest in the country. Venezuela currently produces roughly 1.25 million barrels per day versus about 3 million barrels per day in the late 1990s, leaving substantial potential capacity if foreign investment and infrastructure rehabilitation accelerate.
