A trader works on the trading floor at the New York Stock Exchange (NYSE) in New York City, January 26, 2023.
Andrew Kelly | Reuters
Stock futures slipped Thursday evening as investors look ahead to earnings and economic reports due Friday.
Futures tied to the Dow Industrial Average fell 49 points, or 0.14%. S&P 500 futures and Nasdaq 100 futures were down 0.31% and 0.56%, respectively. Shares of Intel slumped more than 9% in after-hours trading following a dismal earnings report that missed on the top and bottom lines.
Stocks rose during regular trading Thursday, cheering a better-than-expected fourth quarter gross domestic product report that stoked hopes that the U.S. economy can experience a soft landing as the Federal Reserve hikes rates to tame inflation.
The Dow Jones Industrial Average gained more than 205 points, or 0.61%, notching its fifth consecutive winning session, the first streak of that length since October. The S&P 500 rose 1.10% and the tech-heavy Nasdaq Composite jumped 1.76%.
All three indexes are positive for the week and month. The Dow and the S&P 500 have gained 1.7% and 2.2% this week, respectively. The Nasdaq is up 3.3% on the week and is set to notch its best monthly performance since July.
“This year’s stock market rally is impressive and shouldn’t be ignored,” Chris Zaccarelli, chief investment officer for the Independent Advisor Alliance said in a Thursday note. “Unfortunately, the Fed is likely to start talking down the market again, as early as next week, so prepare for volatility again this year; we may be in the eye of the hurricane and not completely out of the woods yet.”
On Friday, investors will be watching for economic reports that will give more information about the state of inflation. Personal income and spending and pending home sales for December are due in the morning. The personal consumption expenditures price index, a preferred inflation measurement for the Federal Reserve, is also due. Consumer sentiment for January will also be released.
It’s some of the last data that will be released ahead of the Fed’s next meeting, which starts at the end of January. Investors are currently expecting a 0.25 percentage point interest rate hike from the central bank.
Earnings season continues as well. American Express, Colgate-Palmolive and Chevron are among companies scheduled to report quarterly results Friday. Investors may be watching Chevron’s report closely after the company announced a $75 billion stock buyback and dividend boost on Wednesday.