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Stocks Down Pre-Bell Ahead of Key Labor Data, Fed Chair Warsh's Remarks

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Stocks Down Pre-Bell Ahead of Key Labor Data, Fed Chair Warsh's Remarks

The main US stock measures were pointing lower in Wednesday's premarket activity as traders await key labor market data and commentary from Federal Reserve Chair Kevin Warsh.

The S&P 500 and the Dow Jones Industrial Average declined 0.2% each before the opening bell, while the Nasdaq was off 0.5%. The indexes finished Tuesday trading in the green, with the Dow recording a new all-time high.

US markets will be closed on Friday in observance of the Independence Day holiday, which falls on a Saturday this year.

Employers in the US announced 45,849 layoffs in June, down 53% from the month prior and 4% year over year, according to Challenger, Gray & Christmas' latest report. The ADP Employment report for last month posts at 8:15 am ET, followed by the weekly jobless claims bulletin at 8:30 am.

The government's nonfarm payrolls report for June is scheduled to be released on Thursday. On Tuesday, official data showed job openings were little changed in May as hiring fell and separations rose.

Warsh is slated to speak at the European Central Bank forum in Portugal at 9 am. Investors will be watching his remarks for any insight into future Fed monetary policy.

Wednesday's economic calendar also has the weekly mortgage applications bulletin at 7 am. The final Purchasing Managers' manufacturing index for June is out at 9:45 am, followed by the Institute for Supply Management's manufacturing index for the same month at 10 am. The weekly EIA domestic petroleum inventories report is due at 10:30 am.

Treasury yields were trending higher in premarket action, with the two-year rate increasing 3.1 basis points to 4.17% and the 10-year rate adding 4.1 basis points to 4.46%.

US President Donald Trump's special envoys, Steve Witkoff and Jared Kushner, arrived in Doha, Qatar, on Tuesday, Bloomberg News reported. Qatar, a mediator between the US and Iran, said the two US envoys are not scheduled to meet any Iranian officials and downplayed the possibility of a breakthrough in talks to permanently end the conflict between the two countries.

West Texas Intermediate crude oil fell 1.2% to $68.66 a barrel before the open, while Brent decreased 1.1% to $72.14.

"Oil prices traded within a relatively tight range near recent lows while remaining on track for their biggest quarterly decline since the pandemic," Saxo Bank said in a report Tuesday.

Shares of Nike (NKE) declined 3.3% pre-bell as the sportswear giant reported lower fiscal fourth-quarter revenue on a yearly basis. Constellation Brands (STZ) gained 1.6% after the beer and wine company reported an unexpected year-over-year increase in its fiscal first-quarter earnings.

General Mills (GIS), FactSet Research Systems (FDS), MSC Industrial Direct (MSM) and Unifirst (UNF) are expected to report their latest financial results before the bell.

Gold moved down 0.9% to $4,003 per troy ounce, while bitcoin slipped 0.1% to $58,600.

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