US Stock Futures Point Lower

Investing.com — US stock futures pointed lower ahead of a new batch of economic data on Thursday. Investors took a cautious stance in the previous session, with the implications of Israel’s potential retaliation to an Iranian attack earlier this week weighing on sentiment. Elsewhere, Tesla (NASDAQ:TSLA)’s quarterly deliveries miss estimates, while Levi Strauss (NYSE:LEVI) says it is mulling options for its underperforming Dockers brand.

1. Futures Lower

US stock futures edged lower on Thursday, as investors looked ahead to the release of an all-important jobs report later in the week and eyed ongoing tensions in the Middle East.

By 03:33 ET (07:33 GMT), the Dow futures contract had shed 111 points or 0.3%, S&P 500 futures had dipped by 16 points or 0.3%, and Nasdaq 100 futures had fallen by 94 points or 0.5%.

The main averages were muted in the prior session, with traders choosing to remain cautious as Israel mulls a possible response to an aerial bombardment from Iran earlier in the week. The benchmark S&P 500 ended 0.79 points or 0.01% higher, while the tech-heavy Nasdaq Composite added 15 points or 0.1% and the 30-stock Dow Jones Industrial Average climbed by 40 points or 0.1%.

US Treasury yields, which typically move inversely to prices, rose following a stronger-than-expected private payrolls report.

2. Jobless Claims, US PMIs Ahead

Markets will have the chance to parse through fresh weekly first-time claims for unemployment benefits and services activity data on Thursday.

The figures are due to pave the way for the crucial nonfarm payrolls report on Friday, which is tipped to show that the American economy added slightly more jobs in September.

Investors will likely use the raft of indicators to assess the state of the US labor market and the broader economy ahead of the Federal Reserve’s upcoming policy meeting in November.

The central bank slashed interest rates by an outsized 50 basis points last month, with officials saying they were keen to provide support to labor demand during a time of waning inflationary pressures. Policymakers also signaled the start of a wider easing cycle, although it remains uncertain whether the Fed will opt to roll out another jumbo cut or a more traditional quarter-point reduction next month.

3. Tesla Slips After Disappointing Quarterly Deliveries

Tesla shares fell more than 3% on Wednesday after the electric vehicle (EV) giant reported disappointing third-quarter deliveries despite slashing prices and offering fresh incentives to entice customers.

Tesla delivered 462,890 cars in the July to September period, rising by 6.4% from a year ago but missing Wall Street expectations of 469,828 units, according to LSEG data cited by Reuters.

CEO Elon Musk has previously said Tesla, who has been strained by stiff competition and weak consumer demand for EVs, will increase its annual deliveries from an all-time high of 1.8 million last year. But, at its current pace, the group would need to report record-smashing deliveries in the fourth quarter in order to avoid seeing a dip in full-year deliveries.

Shares in Tesla had been boosted in recent days as investors geared up for the unveiling of the firm’s new robotaxi on Oct. 10. Hopes are high that the event will mark a shift in the company’s focus into artificial intelligence-powered autonomous driving. Earlier this year, Musk declared that Tesla had become “an AI, robotics” business.

4. Levi Strauss Considering Dockers Sale

Levi Strauss announced it has put its Dockers brand under review for a possible sale and lowered its group-wide full-year revenue forecast, sending its shares down sharply in extended hours trading.

In a statement, the San Francisco-based jeans maker said it had taken the decision to evaluate “strategic alternatives” for Dockers in order to address “the areas where we’ve underperformed.”

Since being introduced by Levi Strauss in 1986, Dockers has made khaki garments that have become synonymous with business casual attire. But the segment has struggled recently, posting a 15% drop in net revenue year-on-year in the third quarter ended in August.

Levi Strauss also reduced its annual sales forecast, guiding for revenue growth of 1% compared to a prior outlook of 1% to 3%.

5. Oil Rises Amid Middle East Turmoil

Oil prices rose Thursday as the escalating violence in the Middle East raised concerns that crude flows could be disrupted from this key exporting region.

By 03:34 ET, the Brent contract climbed 1.2% to $74.81 per barrel, while U.S. crude futures (WTI) traded 1.4% higher at $71.06 a barrel.

Traders are waiting for Israel’s response to Iran firing more than 180 missiles into its territory, with analysts suggesting the country could target Iranian oil infrastructure.

Meanwhile, U.S. crude inventories rose by 3.9 million barrels to 417 million barrels in the week ended on Sept. 27, the Energy Information Administration said on Wednesday, compared with expectations for a 1.3 million-barrel draw.