Stock Market Update

The stock market remains on track for a sharply lower open as mega-cap stocks retreat in the premarket following the latest batch of earnings reports while oil prices continue to rise, pressuring Treasury yields and, in turn, the market's expected policy path from the Fed.

Things are a touch more optimistic on the economic data front, as Initial jobless claims for the week ending July 18 decreased by 22,000 to 187,000 (Briefing.com consensus: 214,000), which is the lowest level since September 1969. Continuing jobless claims for the week ending July 11 were down 2,000 to 1.796 million.

The key takeaway from the report is that the low level of initial claims is a signpost of a labor market that continues to see low firing activity, which is a good sign for continued increases in consumer spending.