U.S. stock market futures were mildly higher Thursday morning ahead of more housing and manufacturing data. On Wednesday, stocks posted sharp declines as bond yields continued to rise. Investors will continue to watch yields. Meanwhile, OPEC announced it would keep output the same.
Of course, the auto sector remains in the headlines. This morning it comes from auto parts supplier Visteon Corp. (OTC: VSTN), which on Thursday filed for Chapter 11 bankruptcy protection, along with some of its U.S. units. The company struggles with significantly reduced demand from automakers.
Overseas, Asian markets were mixed as sliding retail sales in Japan and the looming bankruptcy of General Motors (NYSE: GM) offset any optimism about a global recovery. European stock markets fell Thursday following big losses on Wall Street as rising U.S. bond yields concerned investors.
U.S. bond yields have been steadily rising, particularly 10-year Treasury notes, whose yields have risen to a six-month high of 3.7 percent. Yields and bond prices move in the opposite direction. The problem with higher bond yields is that they have the potential to raise the cost of borrowing for homeowners and businesses, possibly derailing. or at least putting yet another hurdle in any economic recovery.
Economic reports today include:
- Weekly Initial Claims at 8:30 AM -- claims are expected to have declined to 628,000
- April Durable Goods Orders at 8:30 AM -- orders are expected to have risen 0.5%
- April New Home Sales at 10:00 AM -- sales are expected to to rise to an annual rate of 360,000
- Weekly Crude Inventories at 11:00 AM -- while awaiting supplies numbers, Saudi Arabia's oil minister said OPEC has decided to keep production targets unchanged.
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