(For a Reuters live blog on U.S., UK and European stock
markets, click or type LIVE/ in a news window)
*
Futures: Dow up 0.06%, S&P 500 flat, Nasdaq off 0.2%
Sept 5 (Reuters) - U.S. stock index futures were flat to
marginally lower ahead of a series of economic data on Thursday
as investors scoured for clues to determine the size of the
Federal Reserve's interest rate cut that is expected later this
month.
The S&P 500 and the tech-heavy Nasdaq closed lower for the
second straight session on Wednesday after a drop in job
openings in July and a Fed survey fanned worries of slowing
economic activity.
Traders' bets for a 25-basis point reduction in interest
rates at the U.S. central bank's meeting later in September
stand at 59%, according to the CME Group's FedWatch Tool. Bets
for a larger 50-bps cut rose to 41% from 34% a week earlier.
September has been historically weak for U.S. equities, with
the benchmark index down about 1.2% for the month on average
since 1928.
Worries that a cooling labor market could mean a looming
recession have added to the sense of caution, with the benchmark
S&P 500 down more than 2% so far this week and tech stocks
falling nearly 5%.
Late on Wednesday, San Francisco Fed President Mary Daly, a
voting member this year, said the central bank needs to cut
interest rates to keep the labor market healthy, but it is now
down to incoming economic data to determine by how much.
Focus will be on the ADP National Employment Report and
weekly jobless claims, in the run-up to Friday's crucial
non-farm payrolls data from the Labor Department.
Economists expect the ADP report, due at 8:30 a.m. ET, to
show private payrolls rose by 145,000 jobs in August, compared
with an increase of 122,000 in July.
The Institute of Supply Management survey, due at 10 a.m.
ET, is expected to show non-manufacturing activity in August
stood at 51.1.
At 05:32 a.m. ET, Dow E-minis were up 24 points, or
0.06%, S&P 500 E-minis were down 1 point, or 0.02%, and
Nasdaq 100 E-minis were down 39 points, or 0.21%.
Nvidia ( NVDA ) edged up in premarket trading, after falling
more than 11% during the past two sessions. The AI chip firm
said on Wednesday it did not receive a U.S. Justice Department
subpoena.
Tesla rose 2.3% after the electric-vehicle maker
said it will launch the full self-driving advanced driver
assistance software in the first quarter next year in Europe and
China, pending regulatory approval.
Other rate-sensitive growth stocks such as Meta,
Alphabet and Apple ( AAPL ) were flat to marginally
lower.
C3.ai ( AI ) tumbled 18.8% after the AI software firm missed
quarterly subscription revenue estimates as enterprises
tightened spending amid economic uncertainties.
Leading up to the U.S. presidential elections, Goldman Sachs
analysts said Democratic presidential candidate Kamala Harris'
proposed corporate tax hike could lower earnings for companies
on the S&P 500 index by about 5%, while Republican candidate
Donald Trump's proposed relief would boost earnings by about 4%.