Futures slip as tech rally pauses; economic data awaited

By Medha Singh

(Reuters) – U.S. stock index futures dipped on Thursday as a rally in technology stocks cooled and investors looked forward to data on weekly jobless claims as well as business surveys for more clarity on the path to economic recovery.

Shares of Apple Inc , Adobe Inc , Nvidia Corp and Netflix , which have soared more than 70% this year, slipped about 2% each in premarket trading.

Tesla Inc tumbled 6.6%, falling for the third session after announcing a $5 billion stock offering.

Wall Street has rallied in recent weeks with the S&P 500 and Nasdaq hitting new closing highs, driven by the strength in tech-focused companies and unprecedented fiscal and monetary stimulus measures.

The Nasdaq has surged about 80% from its March 23 lows and the S&P 500 and Dow have gained about 60% from their lows. The blue-chip Dow needs to add another 1.2% to surpass its pre-crisis high hit in February.

Data on Thursday is likely to show the number of Americans filing for weekly jobless claims remained elevated in the latest week, but dipped below the 1 million mark. Separately, reading on ISM’s services index probably edged lower to 57 in August from 58.1.

The pivotal monthly payrolls report by the Labor Department is set for release on Friday.

Signs that the U.S. economic recovery is faltering has raised concerns about depleting federal aid. Investors are hopeful that the next fiscal coronavirus relief bill could be unveiled in the coming days.

PVH Corp rose 2.5% after Calvin Klein owner posted a surprise quarterly profit, boosted by strong online demand for comfortable and casual clothing during the coronavirus-led shift to work from home.

At 6:11 a.m. ET, Dow e-minis were down 43 points, or 0.15%. S&P 500 e-minis were down 13.5 points, or 0.38% and Nasdaq 100 e-minis were down 111.75 points, or 0.9%.

(Reporting by Medha Singh in Bengaluru; Editing by Arun Koyyur)