(For a Reuters live blog on U.S., UK and European stock
markets, click or type LIVE/ in a news window.)
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Weekly jobless claims at 225,000
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September ISM non-manufacturing data due at 10 a.m. ET
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Levi Strauss tumbles after saying it is exploring unit
sale
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East, Gulf coast workers' strike enters third day
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Futures off: Dow 0.28%, S&P 500 0.17%, Nasdaq 0.29%
(Updated at 08:44 a.m. ET/1244 GMT)
By Johann M Cherian and Purvi Agarwal
Oct 3 (Reuters) -
Wall Street was poised to open slightly lower on Thursday
after a moderate rise in jobless claims sparked worries about
the health of the labor market, while cautious investors kept an
eye on the
Middle East for any escalation in hostilities.
A Labor Department report showed the number of Americans
filing new applications for unemployment benefits was 225,000
for the week ended Sept. 28, compared with an estimate of
220,000, according to economists Reuters polled.
Odds that the U.S. central bank will trim rates by 25
basis points at its November meeting now stand at 64.5%, up from
50.7% a week ago, according to the CME Group's FedWatch Tool.
Focus now turns to Friday's nonfarm payrolls data for
the month of September.
Rate-sensitive heavyweights took a hit, with Tesla
dropping 1.57%, Apple ( AAPL ) edging down 0.61% and
Alphabet slipping 0.57% in premarket trading. Yields
on Treasury bonds inched higher after the
data was released.
Investors have been wary for the last two sessions as they
contemplated the scale of Israel and the United States' response
to Iran's recent attack on Israel. The CBOE volatility index,
Wall Street's fear gauge, hovered at more than three-week
highs at 19.74.
"We'll see some cautiousness due to two factors: the war
headlines that continue to impact the equities market and of
course, tomorrow's unemployment data," said Peter Cardillo,
chief market economist, Spartan Capital Securities.
"It's safe to say that we'll probably have a mixed
market session today as investors' cautiousness rises ahead of
tomorrow's key macro data of the month."
Dow E-minis were down 119 points, or 0.28%, S&P
500 E-minis were down 10 points, or 0.17% and Nasdaq 100
E-minis were down 58.75 points, or 0.29%.
The Institute for Supply Management's survey on service
sector activity, which makes up the majority of the U.S. economy
is due at 10 a.m. ET.
U.S. stocks have rallied for much of the year, with the
benchmark S&P 500 confirming a bull rally and logging
gains in eight of the previous nine months on expectations of
lower borrowing costs.
Tech stocks have led the charge on the prospect of
their earnings getting a boost from artificial intelligence
integration.
Investors will also assess comments from Fed policymakers
Raphael Bostic and Neel Kashkari later in the day. Richmond Fed
President Thomas Barkin said on Wednesday that sticky inflation
could limit the magnitude of further interest rate cuts next
year.
Meanwhile, a workers' strike on the East and Gulf coasts
entered its third day. Morgan Stanley economists said a
prolonged stoppage could raise consumer prices, with food prices
likely to react first.
Among premarket movers, oil stocks such as Occidental
Petroleum ( OXY ) and Exxon Mobil ( XOM ) edged up 0.30% and
0.39%, respectively, although crude prices rose more than 1%.
Levi Strauss slid 11.6% after the company said it
was considering a sale of its underperforming Dockers brand and
forecast fourth-quarter revenue below expectations.
Constellation Brands ( STZ ) dropped 1.9% after posting
second-quarter results.