U.S. stock index futures struggled for direction on Thursday as investors eagerly awaited big-ticket earnings reports and economic data that could offer insights into the health of the economy. This uncertainty follows a strong finish on Wall Street the day before, where investors overlooked concerns surrounding rate cuts and regional bank stability.
The previous session saw the main stock indexes end on a positive note, with the S&P 500 reaching a new record high and the Nasdaq just shy of its all-time high. This bullish performance was driven by a continued rally in technology and tech-adjacent stocks.
Investors are now focused on upcoming earnings reports from companies such as Spirit Airlines, Tapestry, Hershey, Conocophillips, and Philip Morris. So far, more than half of the S&P 500 companies have reported their quarterly results, with an impressive 81.2% surpassing profit expectations, according to LSEG data.
In terms of economic data, jobless claims for the week ended February 3 are due to be released. Economists are forecasting a slight decrease to 220,000 from the previous week’s 224,000. Additionally, investors are keeping an eye on remarks from policymakers, including Richmond Fed President Thomas Barkin.
Throughout the week, central bankers have expressed little urgency to start easing policy or to move quickly once they do, emphasizing the need for more confidence in inflation heading down to 2%.
Moving on to individual stock movements, Walt Disney saw a notable 6.6% gain after the media giant delivered better-than-expected profit results, announced a gaming investment, and shared plans to launch an ESPN streaming service in 2025. The company also unveiled a $3 billion share repurchase plan and a 50% increase in dividend.
On the other hand, New York Community Bancorp experienced a 4.7% loss after appointing a new executive chairman and revealing potential cuts to its exposure in the troubled commercial real estate segment.
British tech company Arm witnessed a significant 24% surge in its stock price. The company forecasted quarterly sales and profit above expectations due to increased customer demand for chips designed for artificial intelligence work, leading to higher royalties.
However, PayPal disappointed investors with its forecast of flat growth in adjusted profit for the current year, overshadowing the company’s market-beating earnings report. Consequently, shares of the payments giant tumbled 8.6%.
In premarket trading, Dow e-minis were down 23 points, or 0.06%, S&P 500 e-minis were down 4.75 points, or 0.09%, and Nasdaq 100 e-minis were down 7 points, or 0.04%.
Overall, investors are eagerly anticipating the upcoming earnings reports and economic data, hoping for positive results that will provide further insights into the direction of the economy. Amidst ongoing uncertainty, the stock market continues to see-saw, reflecting the cautious sentiment among investors.
