Stock futures were lower on Wednesday night after major averages tumbled for two days, helped by robust earnings and stronger economic reports for June and July that prompted investors to shrug off the possibility of a recession.
Futures tied to the Dow Jones Industrial Average fell 23 points, or 0.07%. S&P 500 futures fell 0.1 percent and Nasdaq 100 futures lost 0.2 percent.
In regular trading hours, all three major averages ended the day higher. The Dow advanced more than 400 points, while the S&P 500 hit its highest level since June. The tech-heavy Nasdaq Composite jumped about 2.5%.
Investors were given the green light to return to high-profile tech names after a surprise rebound in the services PMI in July and comments from St. Louis Federal Reserve President James Bullard. Bullard said he doesn’t think the U.S. is in a recession, citing new jobs and low unemployment.
“US-China tensions remain high and the Federal Reserve continues to talk tough on inflation, but gains were enough to catalyze the next stage of the recovery,” according to Barclays. “A wave of technical quarters came in better than expected and [technology, media and entertainment, and telecommunications] complex led the S&P 500 to a new QTD high.”
Investors will get another round of earnings on Thursday. Eli Lilly, Kellogg, Alibaba and ConocoPhillips are among those due to report quarterly results before the bell.
In economic data, investors look forward to weekly jobless claims in the morning. Federal Reserve Bank of Cleveland President Loretta Mester speaks at the Economic Club of Pittsburgh.
Add Comment