Futures Decline, Tesla Deliveries Update, Levi Strauss Shares Fall – Market Movers to Watch

US Stock Futures Dip as Economic Data Looms

US stock futures decreased on Thursday, reflecting a cautious outlook among investors ahead of a significant economic data release later this week. Sentiment has been affected by the potential repercussions of Israel’s response to an Iranian attack earlier this week. Additionally, Tesla’s quarterly delivery figures fell short of expectations, and Levi Strauss is considering options for its struggling Dockers brand.

1. Stock Futures Decline

On Thursday, US stock futures fell as investors prepared for the upcoming jobs report and remained attentive to the ongoing Middle East tensions. As of 03:33 ET, Dow futures declined by 111 points or 0.3%, S&P 500 futures dropped by 16 points or 0.3%, and Nasdaq 100 futures fell by 94 points or 0.5%.

The main stock indices presented a mixed performance in the previous session, with traders remaining cautious after Israel’s consideration of a counteraction to an aerial assault from Iran. The S&P 500 closed just above the prior day, gaining 0.01%, while the Nasdaq Composite improved by 0.1% and the Dow Jones Industrial Average increased by 0.1%.

US Treasury yields, which typically move inversely to prices, rose following a stronger-than-anticipated private payrolls report.

2. Upcoming Jobless Claims and PMIs

Fresh weekly figures for initial unemployment claims and services sector activity will be released on Thursday. These reports will help set the stage for the crucial nonfarm payrolls data expected on Friday, which is anticipated to show a slight increase in job additions for September.

Investors aim to analyze these new indicators to evaluate the US labor market’s condition and the overall economy as the Federal Reserve approaches its policy meeting in November. The central bank recently cut interest rates by 50 basis points and indicated a commitment to supporting labor demand amid easing inflation.

There is uncertainty regarding whether the Fed will decide on another substantial cut or a conventional quarter-point decrease in its next meeting.

3. Tesla’s Shares Decline Following Delivery Report

Shares of Tesla fell more than 3% on Wednesday after the electric vehicle manufacturer reported lower-than-expected deliveries for the third quarter. The company delivered 462,890 vehicles between July and September, which, while marking a 6.4% increase from the previous year, fell short of Wall Street predictions of 469,828 units.

CEO Elon Musk has previously stated Tesla aims to increase annual deliveries beyond last year’s record of 1.8 million. However, with the current trajectory, the company must achieve significant delivery numbers in the fourth quarter to maintain annual growth.

Tesla’s stock had seen a lift in anticipation of the upcoming presentation of a new robotaxi on October 10, raising hopes for a pivot toward artificial intelligence-enhanced autonomous driving.

4. Levi Strauss Evaluates Dockers Brand

Levi Strauss revealed it is reviewing its Dockers brand for a possible sale and has adjusted its overall annual revenue forecast downward, resulting in a sharp drop in its share price in after-hours trading. The San Francisco-based company announced that it is exploring "strategic alternatives" for Dockers due to the brand’s recent underperformance.

Since its launch in 1986, Dockers has been known for its khaki clothing, a staple in business casual wear. However, the segment has experienced challenges, reporting a 15% decline in third-quarter net revenue compared to the previous year. Levi Strauss has also lowered its revenue growth projection from a range of 1% to 3% to just 1%.

5. Rising Oil Prices Amid Middle East Turmoil

Oil prices climbed on Thursday as escalating violence in the Middle East raised fears of disruptions to crude supplies from the region. As of 03:34 ET, Brent crude rose 1.2% to $74.81 per barrel, and US crude futures (WTI) increased by 1.4% to $71.06 per barrel.

Traders are closely monitoring Israel’s potential response to a recent missile attack from Iran, speculating that Israeli forces may target Iranian oil infrastructure. Additionally, US crude inventories rose by 3.9 million barrels to 417 million barrels for the week ending September 27, contrary to expectations for a smaller decrease of 1.3 million barrels.