• Boeing shares under pressure after reports of a new flaw in the company’s 737 MAX jet fleet
  • Investors are digesting conflicting reports on the state of U.S.-China trade negotiations
  • Semiconductor stocks seen adding to Wednesday’s rally; Advanced Micro Devices and Nvidia shares rise.

Futures for the Dow Jones Industrial Average turned lower on Thursday amid reports of a new flaw with Boeing Co.’s troubled 737 MAX jet fleet and as investors digested reports that China was setting terms for Sino-American trade negotiations to resume.

Futures for the Dow Jones Industrial Average

YMU19, -0.09%

were down 12 points, or 0.1%, at 26,535, but had hit a low 26,445, with Boeing Co.’s

BA, +1.52%

shares down by 2% in premarket action, which would translate into a roughly 40-point headwind on the price-weighted blue-chip index. The aeronautics and defense company’s stock had slide by more than 5% in premarket action.

CNN reported that new issues with the Boeing 737 fleet’s computer system had emerged which could delay the aircraft’s’ return to the air after a world-wide grounding back in March. The fleet was grounded after crashes of the Lion Air flight 610 and Ethiopian Airlines flight 302, which killed 346 people.

Futures for the S&P 500 index

ESU19, +0.16%

traded up 3.85 points, or 0.1%, at 2,921.75 and the Nasdaq-100 futures

NQU19, +0.30%

rose 17.25 points, or 0.2%, at 7,667.25.

Meanwhile, the Wall Street Journal reported that Chinese President Xi Jinping will present President Donald Trump terms to resolve a market-rattling trade confrontation ahead of an expected meeting at the sidelines of the G-20 gathering of developed countries set to take place in Osaka, Japan, this weekend.

Terms include the removal of a ban on the sale of U.S. technology to Chinese telecommunications giant Huawei Technologies Co., the removal of punitive tariffs, and an end to a request for China to buy additional U.S. exports.

The demands raise some doubts that the two sides can achieve a detente and comes after a report from the South China Morning Post that a tentative U.S.-China truce had been achieved.

Investors will also be watching data on new claims for U.S. unemployment benefits due Thursday at 8:30 a.m. Eastern Time on new claims for unemployment benefits, with economists surveyed by MarketWatch expecting a reading of 216,000. The Commerce Department will issue its final revision of first quarter GDP growth at the same time.

At 10:00 am, the National Association of Realtors will issue its pending home sales index.

Which stocks are in focus?

Occidental Petroleum Corp.

OXY, +2.11%

stock could be in focus Wednesday, after investor Carl Icahn called for a special shareholder meeting, where he will seek to replace four directors on the board, arguing that the company’s board should not have approved a $38 billion deal to buy Anadarko Petroleum Corp.

APC, +0.57%

The deal is expected to close in the second half of 2019. Occidental shares were unchanged before the start of trade Thursday.

Shares of Lyft Inc.

LYFT, -1.67%

rose 1.5%, after news that autonomous vehicle firm Waymo, which is a subsidiary of Google parent Alphabet Inc.

GOOG, -0.60%

has officially launched a program to make some self-driving minivans available for Lyft customers. The program is only available in a small area outside, Phoenix, Arizona.

Rite Aid Corp.

RAD, +3.80%

announced first-quarter financial results Wednesday evening, reporting a larger-than-expected loss and no revenue growth. Shares of the retailer were down 9.7% in off-hours trade. Rival Walgreens Boots Alliance Inc.

WBA, -1.08%

meanwhile reported better-than-expected fiscal third-quarter earnings on Thursday morning sending the stock up roughly 1%, before the start of trade.

Fellow retailer Pier 1 Imports Inc.

PIR, +1.39%

also reported disappointing earnings after the market close Wednesday. Shares fell 19% before the start of trade Thursday.

Shares of Conagra Brands, Inc.

CAG, +0.14%

  tumbled 5% in premarket action, after the processed and packaged-foods manufacturer reported worse-than-expected fourth-quarter earnings and sales Thursday morning.

Shares of HealthEquity Inc.

HQY, -3.88%

  fell 3.9% in premarket trade, after the health savings account (HSA) non-bank custodian, said Thursday it has reached agreement to acquire WageWorks Inc

WAGE, +1.63%

Semiconductor stocks appear set to add to yesterday’s rally, instigated by upbeat guidance by Micron Technologies Inc.

MU, +13.34%

  management. Shares of Advanced Micro Devices Inc

AMD, +3.67%

  rose 1.6% and Nvidia Corp.

NVDA, +5.14%

  shares added 1% in premarket trade Thursday.

How did other markets trade?

The yield on the 10-year U.S. Treasury note

TMUBMUSD10Y, -0.42%

fell less than a basis point to 2.037%.

In Asia, Japan’s Nikkei 225

NIK, +1.19%

jumped 1.2% overnight, while China’s Shanghai Composite Index

SHCOMP, +0.69%

fell 0.7%. Hong Kong’s Hang Seng

HSI, +1.42%

index rose 1.4%. In Europe, the Stoxx Europe 600 was trading 0.2% lower.

In commodities markets, the price of crude oil

CLQ19, -0.88%

and gold prices

GCN19, -0.46%

were retreating. The U.S. dollar

DXY, -0.01%

was trading flat, as measured by the ICE U.S. Dollar Index at 96.18.

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2019-06-27