Here are the top stories to read ahead of Thursday trading:
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CarMax Inc.’s stock was down early Thursday, after the used-car retailer’s fiscal second-quarter sales topped estimates — but it was not enough to offset pressure on its car-loan business.
The company had net income of $132.8 million, or 85 cents a share, for the quarter to Aug. 31, up from $118.6 million, or 75 cents a share, in the year-earlier period, matching the FactSet consensus.
Sales fell to $7.014 billion from $7.074 billion, but were comfortably ahead of the $6.831 billion FactSet consensus.
The S&P 500 is flirting with what would be a rare accomplishment: rising 20% or more during two consecutive calendar years.
At least, that was the case as of Tuesday’s close, when the U.S. benchmark saw its year-to-date advance top 20% for the first time since the start of 2024, according to Dow Jones Market Data. The achievement happened to coincide with the index’s 41st record close of the year.
By the time trading ended on Wednesday, the S&P 500 had pulled back a bit. But it remains close to its high, and in the wake of the Federal Reserve’s jumbo interest-rate cut, investors have good reason to expect that it will get there.
Oil futures were in retreat Thursday morning after the Financial Times reported that Saudi Arabia was set to abandon what the newspaper described as its unofficial $100-a-barrel price target as it prepares to increase production in a bid to take back market share.
Saudi Arabia and seven other members of OPEC+ — made up of the Organization of the Petroleum Exporting Countries and Russia — previously agreed to push back the unwind of some production cuts from October to December, sparking speculation the output boost could be indefinitely postponed. The FT report, citing unidentified persons described as familiar with the country’s thinking, said Saudi Arabia is committed to resuming that production on Dec. 1 even if it leads to a period of lower prices.
Joining HSBC, economists at Deutsche Bank now expect a more rapid easing cycle from the European Central Bank.
While they previously expected a quarter-point cut per quarter, until the end of 2025, they now expect the ECB to do the same easing in a shorter timeframe, of mid 2025, with a cut in December as well at every first-half 2025 meeting.
Besides noting that growth indicators have weakened, they also say the lack of ECB pushback to market pricing is “revealing.”
The Swiss National Bank reduced interest rates by 25 basis points to 1% as expected on Thursday, pledging there were more cuts to come given inflation had decreased significantly.
Swiss inflation slowed to 1.1% in August, and has been within the central bank’s 0-2% target range for 15 months.
“Further cuts in the SNB policy rate may become necessary in the coming quarters to ensure price stability over the medium term,” said SNB Chairman Thomas Jordan in prepared remarks for a press conference after what was his 42nd and last monetary policy meeting following a 12-year stint at the helm.
The Swiss franc strengthened 0.4% to 0.8474 francs per U.S. dollar.
Adrian Prettejohn, Europe economist at Capital Economics, the SNB’s “accompanying statement was very dovish and indicated that there are at least two more rate cuts on the way, probably in 25 basis point increments in December and March.”
“Despite the emphasis on the impact of the franc’s strength on inflation, the SNB gave no indication that it is going to use FX interventions to influence the franc’s value,” he added.
Stocks making notable moves in Thursday’s premarket action:
Micron Technology shares are jumping nearly 16% after the memory-chip company gave a revenue outlook above Wall Street expectations.
Shares of other chipmakers are rising in response to Micron’s comments, with Nvidia up 1.5%, Advanced Micro Devices adding nearly 2% and Intel gaining 2.5%.
Jefferies Financial shares are down nearly 6% despite saying revenue surged in the latest quarter driven by gains across both its investment banking and asset management divisions.
H.B. Fuller stock is falling 9% after the specialty chemicals company cut its full-year outlook after slowing market demand.
Concentrix shares are diving 14% after the global technology and services company reported fiscal third-quarter adjusted earnings of $2.87 a share missing analysts’ expectations of $2.93.
Here are some of the companies presenting earnings on Thursday:
Before the opening bell.
Accenture
TD SYNNEX
CarMax
Jabil
After the close.
Costco Wholesale
BlackBerry
Vail Resorts
Here are some of the potential market catalysts due Thursday for traders to consider:
8:30 a.m. Eastern. U.S. weekly initial jobless claims.
8:30 a.m. U.S. GDP for the second quarter, second revision.
8:30 a.m. U.S. durable goods orders for August.
9:15 a.m. Federal Reserve Governor Michelle Bowman speaks on policy and the economic outlook.
9:20 a.m. Fed Chair Jerome Powell gives pre-recorded opening remarks.
9:25 a.m. New York Fed President John Williams speaks at Treasury conference.
10:00 a.m. U.S. pending home sales for August.
10:30 a.m. Fed Vice Chair for Supervision Michael Barr speaks at Treasury conference.
10:30 a.m. Fed Governor Lisa Cook takes part in technology roundtable.
1:00 p.m. Treasury releases results of $44 billion auction of 7-year notes.
1:00 p.m. Minneapolis Fed President Neel Kashkari speaks with Fed Vice Chair for Supervision Michael Barr on banking supervision and inclusive lending.
How are stock-index futures trading:
S&P 500 futures are up 0.8%.
Dow Jones Industrial Average futures are gaining 0.5%.
Nasdaq 100 futures are adding 1.3%.
On Wednesday, the Dow Jones Industrial Average fell 293 points, or 0.7%, to 41,915, the S&P 500 declined 11 points, or 0.19%, to 5,722, and the Nasdaq Composite gained 8 points, or 0.04%, to 18,082.
Futures indicate the S&P 500 will jump to a fresh record high at the opening bell on Wall Street.
Oil prices are falling, however, after a report that Saudi Arabia will abandon its $100 a barrel target and raise production, and as supply fears ease on talk of a possible ceasefire between Israel and Hezbollah.
“It’s a good day to be invested in the markets as major equity indices pushed ahead across Europe and Asia,” says Russ Mould, investment director at AJ Bell.
“Fresh from big stimulus measures earlier in the week, all eyes remained focused on China amid talk that Beijing might inject up to 1 trillion yuan of capital into its top banks and to support the economy through interest rate cuts,” Mould adds.
