U.S. stock futures fell Thursday morning with bond yields higher, and a Bitcoin rally making moves as investors parse through another round of economic data.
Futures tied to the S&P 500 (^GSPC) down 1.14%, while futures on the Dow Jones Industrial Average (^DJI) moved lower by 0.8%. Contracts on the technology-heavy Nasdaq Composite (^IXIC) sank 1.5%.
Over the past 24 hours, bitcoin (BTC-USD) has rallied, hitting a new-six month high amid regulatory crackdowns driving some continued uneasiness. The token stands at about $24,586 in pre-market trading Thursday morning.
The yield on the benchmark 10-year U.S. Treasury note rose to 3.8% Thursday morning. The dollar index moved lower nearly 0.3% to trade at $103.65. Energy traded weaker, with Brent crude futures down 0.3% to $85.08 a barrel.
Stocks capped off the day higher on Wednesday after another economic data print revealed that inflation could be much sticker than many expected.
Retail sales surged 3% in January, the Commerce Department said, reversing two consecutive monthly declines, coupled with higher-than-expected reading on consumer prices Tuesday, leaving unsettling investors concerned that the central bank could keep raising interest rates.
“Robust job growth and a level-shift up in disposable income in the new year also contributed to the Jan spending spike,” Bank of America Economist Aditya Bhave wrote in a note following the release.
Economists at JPMorgan raised their Q1 GDP projection to 2%, from 1%, on the news, noting that the acceleration in retail sales adds to “the goldilocks view of growth without inflation.”
Meanwhile, the Congressional Budget Office warned on Wednesday that the Treasury Department’s ability to continue paying its government bills would be exhausted by the summer unless lawmakers strike a deal to raise the debt ceiling.
On the macro front, investors parsed through fresh economic data, including January’s producer price index (PPI). Headline PPI came in at a monthly increase of 0.7%, up from the 0.4% expected by economists.
Meanwhile, builders continued to slow down home construction in January as housing starts fell to an annualized rate of 1.309 million homes, the Commerce department said, down from the 1.356 million estimated. And permits to build slipped 0.1% to an annualized rate of 1.34 million, below consensus expectations of 1.35 million.
The number of Americans filing new unemployment claims slid to 194,000 for the week ended Feb. 11, the Labor Department said on Thursday, lower than the 200,000 expected by economists.
Separately, Redfin (RDFN), DoorDash (DASH), and Dropbox (DBX) are gearing up to report quarterly results on Thursday after the bell.
In specific stock moves, shares of Paramount (PARA) dropped nearly 7% Thursday morning after the media giant reported an earnings miss on the top and bottom line. Revenue came in at $8.13 billion compared to $8.17 million expected and subscriber growth also took a hit reaching 9.9 million for the quarter versus 10 million forecasted.
Shopify (SHOP) shares sank Thursday after the ecommerce company posted results for the fourth quarter revenue at $1.73 billion against estimates of $1.65 billion. Adjusted earnings per share of $0.07 topped estimates of $0.02. Yet the Ottawa-based company expects first-quarter revenue slightly below forecasts.
Roku (ROKU) stock rose Thursday morning after the company’s net revenue of $867.1 million topped expectations of $804.5 million. Fourth-quarter loss per share of $1.70 came in slightly below $1.74 expected by analysts expectations.
Shares of Cisco (CSCO) climbed 4% in pre-market trading after the company raised its third-quarter revenue guidance to be between 11% to 13% higher year-over-year, topping analysts expectations.
QuantumScape (QS) shares dropped nearly 13% before the bell after posting a narrower-than-expected quarterly loss.
Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv
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