US futures were slightly lower during overnight trading as investors remained cautious in the remaining months of trading.
Dow futures fell 63 points. The future S&P 500 and Nasdaq 100 are trading below the flat line.
Shares of athletic retailer Lululemon rose more than 13% and furniture retailer RH rose 1.32% in off-hours trading thanks to better-than-expected gains. Lululemon also offered a stronger-than-expected outlook for the third quarter and year.
Meanwhile, Boston beer fell more than 9% after making its profits amid slowing growth in its hard seltzer brand.
On Wednesday, the Dow Jones Industrial Average and the S&P 500 fell for the third day in a row. The Dow dropped 68 points and the S&P 500 fell 0.13%.
The Nasdaq Composite outperformed, down 0.6%, as Facebook, Apple, Netflix and Google Alphabet closed lower. The Nasdaq fell for the first session in five, after recording a record close on Tuesday.
Labor market dysfunction amid the Covid-19 pandemic intensified on Wednesday when the Department of Labor’s employment and workload survey showed that working hours exceeded 2 million unemployed people.
The report, which the Federal Reserve is watching closely for signs of a slowdown in employment, showed open positions rising to 10.9 million in July, well above the FactSet estimate of 9.9 million and 10, 2 million in June.
“Higher salaries and one-off bonuses have been the tools many companies use to attract those on the sidelines, but obviously that hasn’t been enough,” Peter Boockvar, investment director at Bleakley Advisory Group, told clients. “We’ll see, of course, what September means with the return to school and the end of extra unemployment benefits, but what is clear … is a great need for more workers.”
Investors will be waiting for the latest weekly data on unemployment claims, which will be published on Thursday morning, to better understand the labor landscape. Economists surveyed by the Dow Jones expected 335,000 Americans to be unemployed last week, up from 340,000 the previous week.
Meanwhile, the Federal Reserve said in its latest “beige book” that U.S. companies are experiencing rising inflation that is intensified by the shortage of goods and is likely to be passed on to consumers in many areas.
The Fed also reported that global growth “has slowed slightly at a moderate pace” amid public health concerns during the July-August period covered by the report.
“The slowdown in economic activity was largely attributed to a decline in restaurants, travel and tourism in most districts, reflecting safety concerns due to the increase in the Delta variant and in some cases , of international travel restrictions “. dit.
The launch of the Beige Book comes as the Fed debates the withdrawal of some of its easy policies. Specifically, officials are considering reducing monthly bond purchases, probably before the end of the year.
“The lack of market reaction today shows that many of these concerns come at a price, but in a larger market downturn, which may materialize this fall, either due to reduced ads or other potentially unexpected news , should provide an opportunity to introduce positions in travel, leisure and hospitality, as recovery is likely to be delayed and not completely canceled, ”said Chris Zaccarelli, investment director at the Independent Advisor Alliance.