US equity futures mixed; data in focus

Wall Street top three stock indexes were set for a mixed open on Thursday as market participants eyed fresh economic data ahead of the Fed’s June policy meeting.

US indexes ended the last trading session of May on a negative note, with the Dow Jones industrial average plunging about 20 points as Goldman Sachs stocks absorbed most losses.

The S&P 500 closed 0.05 percent to the downside, with financial components leading decliners during the session. The Nasdaq composite followed the same faith, falling 0.1 percent.

• Dow Jones Industrial Average: -20.82 / -0.10% / 21008.65
• Standard & Poor’s 500: -1.11 / -0.05% / 2411.80
• Nasdaq Composite: -4.67 / -0.08% / 6198.52

Despite the red closing on Wednesday, the Dow Jones, S&P 500 and Nasdaq were able to secure gains on monthly basis. The Nasdaq amounted 2.5 percent in the last month and it continues to trade near all-time record highs.

Investors’ attention is now shifting to the upcoming Federal Reserve meeting, when it’s expected a rate move of about 25 basis points to 1.00 - 1.25 percent. According to Fed funds tracked by CME Group’s FedWatch program, chances for a hike are above 91 percent.

However, an increasing number of analysts is worried that the FOMC may change its view on how the economy is actually doing. In this scenario, the regulator could alter its current policy normalization path and limit rate adjustments from up to three to up to two hikes in 2017.

There are other factors weighing on analysts’ minds. For instance, the political turmoil over alleged interference of the Russian government in the November elections in support to the Trump administration. Investors fear that such investigation will affect Trump’s ability to push its economic agenda, especially the long-awaited tax reform, in Congress.

Today, ADP nonfarm employment change outperformed expectations for May, reporting a 253,000 jobs build against 185,000 seen and a previous 174,000. Initial jobless claims, nonfarm productivity and unit labor costs are due at 12:30 GMT. Markit’s manufacturing PMI is scheduled at 13:45 GMT, while ISM’s PMI comes at 14:00 GMT. The US Energy Information Administration will release its weekly inventory report later this afternoon.