Market Overview - Pre-market futures indicate a positive market sentiment with the Dow up 300 points, S&P 500 up 50 points, Nasdaq up 250 points, and Russell 2000 up 25 points, despite less favorable economic reports [1] Employment Data - Initial Jobless Claims were reported at 228K, slightly below the estimated 230K, marking a decrease of 13K from the previous week's revised figure of 241K, indicating stability in the labor market [2] - Continuing Claims reached 1.879 million, consistent with trends over the past six months, although the previous week reported 1.916 million, the first print above 1.9 million since November 2021 [3][4] Productivity and Labor Costs - Q1 U.S. Productivity showed a negative growth of -0.8%, which is 10 basis points lower than expectations, following a +1.5% growth in Q4 2024, marking the first negative print since Q2 2022 [5] - Unit Labor Costs increased by 5.7%, exceeding the expected 5.1%, the highest level since Q3 2020, indicating potential challenges for economic growth [6] Company Earnings Reports - Shopify (SHOP) reported Q1 earnings of $0.25 per share, missing consensus by a penny, while revenues of $2.36 billion exceeded expectations by 1.32%, but shares fell by 7% [7] - ConocoPhillips (COP) surpassed earnings estimates with $2.09 per share and revenues of $17.1 billion, outperforming the previous year's $14.48 billion, leading to a 1.6% increase in shares [8] - Crocs (CROX) reported earnings of $3.00 per share, exceeding expectations by 19.5%, with revenues of $937.3 million slightly below year-ago levels, resulting in a 4.7% increase in shares [9]

Economic Overview - Pre-market indexes are showing declines, with the Dow down 414 points, S&P 500 down 71, Nasdaq down 326, and Russell 2000 down 32 points [1] - The European Central Bank (ECB) has lowered interest rates by 25 basis points, with the Deposit Facility now at +2.50%, indicating confidence in controlling inflation [2] - German bund yields increased by 30 basis points to around +2.85%, the highest since 1990, reflecting significant economic behavior in the EU [3] Labor Market Insights - Initial Jobless Claims for last week were reported at 221K, lower than the anticipated 235K, and down from the previous week's 242K, suggesting stability in the labor market [4] - Continuing Claims rose to 1.897 million, approaching the psychological level of 1.9 million, which may indicate concerns about the robustness of the U.S. labor market [5] Productivity and Costs - Q4 Productivity was revised up by 30 basis points to +1.5%, marking the ninth consecutive upward movement in U.S. productivity [6] - Unit Labor Costs were revised down to +2.2%, lower than previous quarters, indicating a favorable trend of increased productivity alongside reduced costs [6] Trade Balance - The U.S. Trade Deficit reached a record low of -$131.4 billion, exceeding expectations of -$128.7 billion, influenced by anticipated trade tariff changes [7] Market Expectations - Following positive earnings reports from Macy's, Burlington Stores, and Cracker Barrel, upcoming earnings from Broadcom and Costco are anticipated, along with data on Wholesale Inventories for January [8]