By Victor Reklaitis and Mark DeCambre, MarketWatch
Nasdaq-100 futures point to a rise at the opening bell
U.S. stock futures signaled that Wall Street trade is poised to wrestle with further volatility as traders contend with concerns about rising inflation and bond yields, against the backdrop of a relatively healthy domestic economy.
The stock market remains down sharply for the week. Analysts have pinned the recent selling in part on rising bond yields amid signs of inflation. But they have also noted that equities were due for a pullback after scoring big gains in January and throughout 2017.
What are the main benchmarks doing?
Dow Jones Industrial Average futures rose by 105 points, or 0.4%, to 24,847, while S&P 500 futures added 13.05 points, or 0.5%, to 2,682. Nasdaq-100 futures tacked on 48.75 points, or 0.7%, to 6,604.25.
On Wednesday, the Dow closed 0.1% lower, the S&P 500 lost 0.9%, and the Nasdaq Composite shed 0.9%.
The three gauges are down between 2.5% and 2.9% for the week as of Wednesday's close, after tumbling Monday , rallying Tuesday and suffering modest losses Wednesday . The Dow has cut its 12-month gain to 24%.
What are strategists saying?
"While yesterday's moves were slightly more orderly, it appears to be far from clear that the recent increase in volatility has subsided," said Michael Hewson, chief market analyst at CMC Markets UK, in a note.
What could help drive markets?
Political worries might pressure the market somewhat, as a partial shutdown of the federal government lies ahead if lawmakers don't agree on spending measures by midnight.
Senate Majority Leader Mitch McConnell and Senate Minority Leader Chuck Schumer unveiled an agreement Wednesday. The deal faces a bumpy path in the House , where Republicans will need Democrats' help to pass it, since conservatives will likely object to a big increase in government spending.
What's on the economic docket?
Initial U.S. jobless claims fell by 9,000 to 221,000 in the seven days ended Feb 3. Economists surveyed by MarketWatch forecast a 235,000 reading.
Check out:MarketWatch's Economic Calendar
The recent correction in financial markets is healthy and is unlikely to hurt financial conditions or the broader U.S. economy, Dallas Federal Reserve President Robert Kaplan said early Thursday (https://www.wsj.com/articles/market-correction-is-healthy-says-feds-kaplan-1518011212?mod=mktw) at an event in Germany.
Three other Fed officials are scheduled to speak later. Philadelphia Fed President Patrick Harker was set to address the economic outlook and the impact for colleges at 8 a.m. Eastern in New York City, while Minneapolis Fed President Neel Kashkari will participate in a discussion at the chamber of commerce for Pierre, S.D., at 9 a.m. Eastern.
Kansas City Fed President Esther George is due to give a speech on the economic outlook to a business group in Wichita, Kan., at 9 p.m. Eastern.
Which stocks look like key movers?
Shares in Tesla Inc.(>> Tesla)traded nearly 2% lower in premarket action. The maker of electric cars late Wednesday posted a narrower-than-expected adjusted loss for the fourth quarter.
21st Century Fox Inc.(>> 21st Century Fox)looks on track for an up day after the media company reported better-than-anticipated earnings late Wednesday.
Shares of Twitter Inc.(>> Twitter Inc)soared 25% in premarket trading Thursday after the microblogging company delivered better-than-expected financial results and reported its first-ever quarter of GAAP profitability.
Rice Krispies producer Kellogg Co.(K)are likely to see active trading as they're among the companies due to post earnings before the open.
Yum Brands Inc.(>> Yum Brands) and Grubhub Inc. (>> GrubHub Inc) said Thursday they have entered a partnership in the U.S. aimed at driving online sales and delivery to Yum's restaurants, including KFC and Taco Bell. Meanwhile, Grubhub's stock gained after the company reported better-than-expected revenue .
Teva Pharmaceutical Industries Ltd. shares (>> Teva Pharmaceutical Industries Limited)plummeted in premarket trade Thursday after the company reported fourth-quarter profit and revenue beats but provided 2018 guidance that fell well short of expectations.
What are other assets doing?
European stocks moved down, with U.K. stocks after the Bank of England held interest rates unchanged but said interest rates may go up sooner than previously expected . In its quarterly inflation report, the U.K. central bank lifted its 2018 economic growth forecast to 1.8% from 1.6%, saying U.K. trade is benefiting from a strong global upswing.
Asian markets mostly finished with gains .
The yield on 10-year Treasury notes was at 2.835%, little changed from late Wednesday .
Gold futures edger slightly higher, as the metal ties to avoid its fifth straight decline as the dollar slips and as the 10-year Treasury yield continued to rise, with yields at 2.86%. Meanwhile, crude-oil futures were lower, as the ICE U.S. Dollar Index gained.
Sign up here to get our Need to Know column delivered to your email box.