Stocks were headed to another weak open on Thursday after the House of Representatives passed President Donald Trump’s big tax bill by a one-vote margin.
The tax bill, if it survives the Senate, would add an estimated $2.7 trillion to the federal deficit over the next 10 years.
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Futures trading in the Standard & Poor’s 500 indicated the broad index would open about 18 points lower. The Nasdaq Composite Index is set to open off 50 points, and the Dow Jones Industrial Average was looking at a loss of 170 points.
U.S. stocks suffered a drubbing on Wednesday after bond yields shot up.
The U.S. market woes pushed stocks in Japan lower on Thursday, and selling continued in European markets.
Crude oil was off 97 cents to $60.60 per 42-gallon barrel. Gold was off $5.40 to $3,308.50 per troy ounce.
U.S. treasury bond market is still weak
The catalyst setting off all this selling was a disappointing auction of 20-year Treasury bonds on Wednesday. The auction results reflected investor unhappiness with the tax bill.
In early trading Thursday, the 30-year Treasury yield was at 5.144% in early trading, up from 5.09% on Wednesday. The 10-year Treasury yield was at 4.616%, the highest level since February.
Bitcoin was trading above $111,000 and hit a high of $111,875.
JP Morgan Chase (JPM) Chief Executive Jamie Dimon, speaking in China, said that he remained worried about stagflation — high inflation combined with high unemployment — and that the Federal Reserve was correctly holding off on cutting interest rates.
Traders work on the floor of the New York Stock Exchange on Wednesday as stocks the Dow dropped more than 800 points.
Spencer Platt/Getty Images
Some companies offer some good news
Snowflake (SNOW) surged more than 11% in premarket trading after the cloud-based data-storage company posted upbeat first-quarter results and raised its full-year product revenue guidance.
Lumen Technologies (LUMN) jumped more than 12% in premarket trading after AT&T (T) agreed to acquire its residential fiber broadband network for $5.75 billion
Urban Outfitters (URBN) shot up more than 18% in the premarket after the apparel-brands group reported stronger-than-expected first-quarter results.
Nike (NKE) moved up 2% premarket after saying it would sell products on Amazon.com’s (AMZN) U.S. site for the first time in more than five years.
Analog Devices (ADI) were higher pre-market after the chipmaker reported strong earnings late Wednesday.
Companies reporting later Thursday include Workday (WDAY) , Ross Stores (ROST) and Deckers Outdoor (DECK) .
Economic reports include the weekly report on jobless claims, two reports on purchasing managers indexes from Standard & Poor’s, and existing-home sales from the National Association of Realtors.
Related: Veteran fund manager unveils eye-popping S&P 500 forecast
