Stock futures are lower after two straight days of declines for major indexes as investors await key economic data; Costco Wholesale (COST) is scheduled to report earnings after the closing bell; Intel (INTC) shares are rising on a report it is seeking an investment from Apple (AAPL); and Starbucks (SBUX) is laying off workers and closing stores as it continues to restructure. Here's what you need to know today.
1. Stock Futures Lower After Two Straight Losing Sessions
Stock futures are pointing a lower open for major indexes after two days of declines as investors prepare for the release of key economic data reports to finish off the week. Futures tied to the benchmark S&P 500 and the tech-heavy Nasdaq were recently down 0.4% and 0.6%, respectively, while Dow Jones Industrial Average futures slipped 0.2%. Gold futures edged higher to $3,785 an ounce to stay near record highs, while bitcoin (BTCUSD) was at $111,500, little changed from yesterday afternoon. The yield on the 10-year Treasury note, which affects mortgage rates and a variety of other consumer borrowing costs, edged higher to 4.16%.
2. Costco Set to Release Earnings Report
Costco Wholesale (COST) will release its fiscal fourth-quarter results after the closing bell today, with some analysts expecting volatility in the stock. The update comes after some investors were shaken in the spring by signs that sales growth had decelerated. The company has already reported that fourth-quarter sales rose 8% compared with the year-ago quarter. Analysts tracked by Visible Alpha expect the retailer to report that profits grew to $2.6 million in the fourth-quarter, up from $2.4 million a year ago. Costco shares, which have gained 3% since the start of the year, were slightly higher in premarket trading.
3. Jobless Claims, GDP Revisions Come Ahead of Tomorrow’s Inflation Data
Data on economic growth, jobless claims and housing sales are in focus this morning ahead of a highly anticipated inflation report that's set to be released Friday. The jobless claims numbers, which are expected to show a slight increase, are being closely watched by investors after the Federal Reserve cut interest rates last week amid signs that the labor market is weakening. Revisions to second-quarter gross domestic product are expected to show that growth held steady at 3.3%, while existing home sales are estimated to have declined slightly. Several Fed officials are scheduled to speak today, ahead of the release tomorrow morning of the Fed's preferred measure of inflation.
Shares of Intel (INTC) continued gaining ground this morning following a report the chipmaker is seeking an investment from Apple (AAPL). Intel shares rose more than 6% on Wednesday after Bloomberg News reported on talks between the companies, which also centered on other ways that Apple could help the beleaguered chipmaker. The report comes after Nvidia (NVDA) last week agreed to invest $5 billion in Intel as part of a deal that will see the two companies co-develop chips for data centers and PCs. Intel shares were up nearly 2% in recent premarket trading. The stock has gained more than 50% year-to-date, but remain well off its historical highs. Apple shares were little changed ahead of the bell.
5. Starbucks Announces Layoffs, Store Closings Amid Turnaround Effort
Starbucks (SBUX) is laying off around 900 employees in its corporate offices and closing some stores as CEO Brian Niccol continues to implement his “Back to Starbucks” turnaround plan. Niccol said in an update Thursday that the total number of stores was expected to decline by about 1% in 2025 after the closures. He said that laid-off employees in corporate offices would receive severance packages, while employees at closed stores could also receive severance if they are not transferred to other nearby stores. The moves come as analysts have praised the coffee chain’s efforts to revive sales amid sluggish customer traffic. Starbucks shares were flat in premarket trading.
