Stock futures drop slightly as investors focus on the health of the economy

US stock futures fell slightly on Wednesday night as economic concerns dented investor confidence.

Futures linked to the Dow Jones Industrial Average were down 74 points, or 0.2%. S&P 500 and Nasdaq 100 futures were also down 0.2% each.

Shares of after-hours pet retailer Chewy jumped about 20% after the company reported strong quarterly results. Apparel retailer PVH also got a boost from earnings, with shares adding more than 4%.

Meanwhile, Hewlett-Packard Enterprise stock is down more than 6% after minor losses in both earnings and revenue.

In regular trading, stocks started in June with declines amid choppy trading. The Dow Jones Industrial Average fell 176.89 points, or 0.5%. The S&P 500 was down 0.8%, and the Nasdaq Composite was down 0.7%.

Sentiment was heavy after JPMorgan CEO Jamie Dimon warned of this Economical “hurricane” Because of the Federal Reserve and the war in Ukraine is brewing. He said his company “will be very conservative in terms of our balance sheet”.

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Moreover, new data indicates that the economy is still fast. The number of vacancies in April, released Wednesday, fell sharply from the previous month – but the results indicate that the labor market remains tight. Furthermore, the Institute for Supply Management said its manufacturing PMI came in at 56.1 for the month of May, up from 55.4 the previous month.

“The market has remained volatile with a negative slope for the start of June,” said Rob Haworth, chief investment analyst at US Bank Wealth Management. “Inflation remains a major concern as underlined by high oil prices and consumer concerns In the Federal Reserve’s Beige Book economic report. “

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In fact, the central bank report showed that the US has only been experiencing “modest or slight” economic growth over the past two months or so.

“Our view is cautious as the second quarter closes,” Haworth added. “Global central bank uncertainty, the pace of tighter monetary policy, still-tight global energy and agricultural markets — which could keep prices higher — and headwinds to corporate earnings growth are risks for investors moving forward.”

Retail earnings continue this week, with Designer Brands, Lululemon Athletica, and RH due to report Thursday. Big tech names like CrowdStrike and Okta are also on board.

Investors also monitor employment data for insights into how employers and employees are managing inflation. The ADP will release data from its national employment report at 8:15 a.m. ET on Thursday, shortly before the Labor Department releases its weekly jobless claims.

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