U.S. stock-index futures rose on Thursday after data showed that nascent recovery in the U.S. labor market stalled, supporting the case for a massive stimulus package.

Global Stocks:

(company / ticker / price / change ($/%) / volume)

Twitter (TWTR) upgraded to Neutral from Sell at MoffettNathanson; target $55

Cisco (CSCO) upgraded to Buy from Hold at DZ Bank; target $52

DuPont (DD) upgraded to Hold from Sell at DZ Bank; target $77

USD fell against most of its major rivals in the European session on Thursday as markets assessed the tame U.S. inflation data for January, disappointing weekly jobless claims, and reiteration of Fed’s accommodative policy stance

Official data showed on Wednesday that U.S. headline CPI was up 0.3% m/m in January, while core CPI, which excludes food and energy, was unchanged m/m. On y/y basis, core CPI decelerated to 1.4% from 1.6% in December. Though the CPI data isn't the Fed's preferred inflation measure, it still signaled muted inflation pressure for consumers. However, some economists predict that it will accelerate as President Joe Biden pushes for a massive stimulus package and when consumer spending begins to ramp up after coronavirus lockdowns ease.

Yesterday, the market participants also received confirmation from the Fed's Chair Powell about the central bank's accommodative monetary policy, which should complement the additional fiscal stimulus and vaccination process needed to support the U.S. economic recovery. Powell said the U.S. labor market was a "long way" from a recovery, adding that “achieving and sustaining maximum employment will require more than supportive monetary policy.”

The Labor Department revealed on Thursday that the latest weekly initial jobless claims count totaled 793,000, which was slightly below the prior week's upwardly revised count of 812,000 (originally 779,000).  Economists had forecast a total of 757,000. The data confirmed that the U.S. labor market struggles continue.

FXStreet reports that the Credit Suisse analyst team note that the S&P 500 Index remains at the 3900/3930 resistance cluster and the “ideal” roadmap remains for a cap here at first and for a consolidation/correction phase to unfold.

“S&P 500 is showing tentative signs of stalling at our 3900/3900 ‘measured triangle objective’ and resistance zone and although we continue to see the broader trend higher, our ‘ideal’ base case remains for a cap here at first and for a temporary consolidation/correction phase to unfold.” 

“Support moves to 3897 initially, then 3885/82 below which would now add weight to our view as this would see a minor top complete for a retreat back to 3871 initially, then the rising 13-day exponential average, currently at 3854. A close below here is needed to suggest a lengthier consolidation can emerge, with support seen next at 3840/30.” 

PepsiCo (PEP) reported Q4 FY 2020 earnings of $1.47 per share (versus $1.45 per share in Q4 FY 2019), beating analysts’ consensus estimate of $1.46 per share.

The company’s quarterly revenues amounted to $22.455 bln (+8.8% y/y), beating analysts’ consensus estimate of $21.759 bln.

The company also announced a 5% increase in its annualized dividend to $4.30/share from $4.09/share.

PEP rose to $138.10 (+0.29%) in pre-market trading.

FXStreet notes that the Bank of England (BoE) balanced preparedness to adopt NIRP with tapering of QE last week while outlining the potential for a vaccine rollout-led economic rebound. The GBP/USD pair now looks set to push towards 1.40, in the view of economists at Westpac.

“Last week’s BoE policy meeting and Monetary Policy Review (MPR) affirmed the MPC’s accommodative stance as the UK faces a double-dip recession due to the current stringent lockdown. However, the MPR also laid out factors that could provide the grounds for a sound recovery through the rest of 2021 and 2022.” 

“UK’s encouraging covid vaccination rollout and the recent pullback in covid infections, still uncomfortably well above 10K per day, do suggest that the Government’s goal of beginning to unwind restrictions in mid-March is becoming more likely. If this also starts to release pent-up demand and savings, the growth prospects will also become more likely.” 

“GBP/USD now has potential to push towards 1.40 within a higher 1.3750-1.40 range near-term.”

Uber (UBER) reported Q4 FY 2020 loss of $0.54 per share (versus -$0.64 per share in Q4 FY 2019), slightly better than analysts’ consensus estimate of -$0.55 per share.

The company’s quarterly revenues amounted to $3.165 bln (-15.5% y/y), missing analysts’ consensus estimate of $3.559 bln.

The company also said it remains on track to turn EBITDA positive in 2021.

UBER fell to $60.70 (-3.93%) in pre-market trading.