S&P 500; US Indexes Fundamental Daily Forecast – Oil Prices Will Dictate Direction Today

U.S. stock index futures are pointed towards a lower opening on Thursday as investors continue to monitor the direction of crude oil prices while waiting for the release of a few economic releases.

Lower oil prices weighed on the Asian indexes early Thursday. Traders were primarily reacting to a plunge in oil prices to a 10-month low on Wednesday. Some indexes recovered into the close, but the trade was mostly cautious.

Stocks did recover a little in Australia after energy and materials stocks dragged down the S&P/ASX 200 a day earlier.

European exchanges were also lower in reaction to depressed oil prices and weakness in commodities-related sectors.

Investors are likely to continue to focus on the fluctuations of oil prices. The main concern for oil traders is the on-going glut in the market.

As far as economic news is concerned, the U.S. will release weekly jobless claims at 1230 GMT, followed by the FHFA House Price Index at 1300 GMT and the Kansas City Fed Manufacturing Index, expected at 1500 GMT.

The Federal Reserve Board is set to release the results from the latest supervisory stress tests conducted as part of the Dodd-Frank Act.

FOMC Member Jerome Powell is also scheduled to speak at 1400 GMT. He could move the markets if he talks about low inflation’s effect on future interest rate hikes by the Fed.

Weekly Unemployment Claims are expected to come in at 241K, up slightly from the previous 237K. The HPI report is expected to show a 0.4% increase, down slightly from 0.6%. The Conference Board’s Leading Index, due at 1400 GMT, is expected to come in slightly higher at 0.4%.

Despite the slew of reports, investors are likely to continue to focus on the direction of oil prices. Because of their exposure to the oil sector, the benchmark S&P 500 Index and the blue chip Dow Jones Industrial Average are likely to be affected the most by the price action in crude oil. The NASDAQ Composite could benefit the most from lower oil prices.