According to the main averages, stock futures have hardly changed after the first positive session in three years
US stock index futures were subdued early on Thursday morning, largely holding onto key averages from Wednesday’s session.
Futures contracts linked to the Dow Jones Industrial Average lost just 13 points. S&P 500 futures and Nasdaq 100 futures were both trading around the flatline.
Shares rose during regular trading hours on Wednesday and saw a two-day streak of bad luck as companies tied to reopening the economy showed the way up. The Dow was up 316 points, or 0.93%, while the S&P 500 was up 0.93%. The Nasdaq Composite was the relative outperformance of the most important indices with 1.19%.
Small caps were a particular strength point during the session. The Russell 2000 finished the day 2.35% higher than its best day since March 1st.
The Dow and S&P 500 are less than 1% away from regaining their record highs last Friday amid ongoing optimism about the pace of the economic recovery.
“Stocks continue to shoot almost all cylinders and remain in a strong position as the bull stretches beyond cyclical, secular, and increasingly defensive [sector] with an economy on the offensive, “stated strategists at Evercore ISI.” The sum of that coupled with soaring metals and materials, a Milquetoast dollar and a 10 year worth of 1.55% provides the technical definition of “goldilocks” as we consolidate the strong rally on key support, “the company said .
A busy week of winning season continues on Thursday. A large number of companies will publish quarterly results.
AT&T, DR Horton, Southwest, American Airlines, Union Pacific and Biogen are among the names on deck before the opening bell. Intel, Snap, Mattel, Boston Beer and Seagate Technology will report back after the market closes.
The economic data released on Thursday also gives investors a glimpse of the ongoing economic recovery. First unemployment claims are published at 8:30 a.m. CET. According to estimates by Dow Jones, economists expect a pressure of 603,000. Existing home sales data will be published at 10 a.m. CET.
“Significant stimuli, more of which come from the Biden government, have boosted economic outlooks and could raise overall EPS expectations from the consensus forecast of $ 174 currently to $ 180-185,” said Tobias Levkovich of Citi recently in a message. “We believe stocks reflect something closer to $ 190, which suggests that a lot is already priced in and that a shortfall could result in a significant decline,” he added.
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