Early Thursday, U.S. stock index futures saw an increase in anticipation of earnings reports from three major companies – Apple, Amazon.com, and Meta Platforms.
Here’s how stock-index futures are currently trading:
- S&P 500 futures (ES00, 0.38%) rose 14 points, or 0.3%, to 4884.
- Dow Jones Industrial Average futures (YM00, 0.09%) gained 32 points, or 0.1%, reaching 38312.
- Nasdaq 100 futures (NQ00, 0.55%) climbed 86 points, or 0.5%, to 17328.
In the previous session, the Dow Jones Industrial Average fell 317 points, or 0.82%, to 38150, the S&P 500 declined 79 points, or 1.61%, to 4846, and the Nasdaq Composite dropped 346 points, or 2.23%, to 15164.
Factors influencing the market:
The S&P 500 has experienced a 1.7% decline over the last two sessions, driven by disappointment in big tech earnings and concerns about the monetary policy trajectory.
These factors are likely to continue influencing market sentiment throughout the week.
After Microsoft, Alphabet, and Advanced Micro Devices couldn’t match the optimistic outlook that led the market to a record high earlier in the week, Apple, Meta, and Amazon.com are set to announce their results after Thursday’s close.
Investors are cautious, with many waiting for any missteps to take advantage of the stretched tech rally, according to Ipek Ozkardeskaya, a senior analyst at Swissquote Bank.
Apple, Amazon, and Meta’s results need to impress investors, or the tech selloff may intensify, warned Ozkardeskaya.
Apple’s options pricing indicates traders anticipate a move of approximately plus or minus 3% for the stock by the end of the week, according to MarketWatch calculations.
Other companies reporting results on Thursday include Altria, Peloton Interactive, Merck, and Honeywell International before the opening bell, followed by Atlassian, U.S. Steel, and Skechers after the close.
Traders are also monitoring the regional banking sector, particularly after New York Community Bancorp’s shares plunged due to difficulties in commercial real estate.
Aozora, a Japanese bank, issued a profit warning, cutting the value of its U.S. office portfolio and facing losses on U.S. and European bonds.
Investors are still considering the timing of potential Federal Reserve rate cuts. While Fed Chair Jay Powell mentioned a rate cut in March was not the most likely scenario, fixed income futures markets now indicate an increased certainty of rates falling at the subsequent Fed meeting in May.
Steve Clayton, head of equity funds at Hargreaves Lansdown, likened the situation to a delayed train rather than a cancellation. Investors are less likely to forgive delays if data suggests the economy has room to keep inflation rising, he added.
Market focus will also be on the nonfarm payrolls report on Friday, hoping for signs that wage growth is not accelerating.
Before that, U.S. economic updates set for release on Thursday include the weekly initial jobless claims report, fourth-quarter 2023 productivity, the final reading of the S&P manufacturing PMI survey for January, and the January ISM manufacturing report, along with December construction spending. All are scheduled for release at various times during the day.
