By Fred Imbert, CNBC–
U.S. stock index futures turned positive Thursday morning, after China said it wished to resolve its protracted trade dispute with the world’s largest economy with a “calm” attitude.
At around 05:30 a.m. ET, Dow futures rose 235 points, indicating a positive open of more than 248 points. Futures on the S&P and Nasdaq were both higher, reversing earlier losses.
The comments appeared to soothe investor concerns at a time when many are worried about the possibility of a global recession.
On Wednesday, the rate on the benchmark 30-year Treasury bond sank to an all-time low , while the U.S. yield curve inverted even further.
The closely-watched spread between the 10-year Treasury yield and the 2-year rate briefly fell to negative 6 basis points in the previous session. The move extended losses from earlier in the week, when the spread registered its lowest level since 2007 .
A 10-year rate below the 2-year yield is viewed by fixed income traders as an important recession prognosticator , marking an unusual phenomenon as bondholders receive better compensation in the short term.
Data, earnings
On the data front, the latest weekly jobless claims, a second reading of second-quarter GDP (gross domestic product) and advance economic indicators for July are all scheduled to be released at 8:30 a.m.
Pending home sales for July will follow slightly later in the session.
In corporate news, Toronto-Dominion Bank , Best Buy and Dollar General are among some of the companies expected to report earnings before the opening bell.
Dell , Marvell Tech and Workday are scheduled to release their latest quarterly results after market close.
Leave A Comment
You must be logged in to post a comment.