S&P 500 futures are near flat Thursday night as investors wondered what’s next for the market after the postelection rally wavered.
Futures tied to the Dow Jones Industrial Average lost 25 points, or 0.1%. S&P 500 futures also slipped 0.1%, while Nasdaq 100 futures shed 0.2%.
In extended trading, Applied Materials slid more than 5% after posting weak guidance for revenue in the current quarter. Domino’s Pizza jumped more than 7% after Berkshire Hathaway announced a new stake in the pizza chain.
That action follows a losing day on Wall Street as the postelection upswing continued to show signs of fizzling. The Dow fell more than 200 points in the session, while the S&P 500 and Nasdaq Composite each slipped about 0.6%.
Stocks took a leg down in afternoon trading after Federal Reserve Chairman Jerome Powell said during an event in Dallas that the central bank wasn’t “in a hurry” to cut interest rates. That comes after the Fed cut the borrowing cost last week.
The three major indexes are also tracking to end the week lower, giving up some gains seen during last week’s climb on the back of Donald Trump’s victory in the presidential election. The Nasdaq Composite has dropped 0.9% this week, while the S&P 500 and Dow have shed 0.8% and 0.5%, respectively.
“Investors are catching their breath and evaluating whether the advance has merit,” said Sam Stovall, chief investment strategist at CFRA Research. “We really don’t see anything on the horizon right now to upend stocks, but investors are always sort of looking around to see what could cause the trend to end.”
Investors will watch Friday for economic data on retail sales, import prices and industrial production. That caps a busy week for economic data that was punctuated by releases of closely watched inflation gauges focused on consumers and producers.
On the earnings front, e-commerce giant Alibaba is due to report quarterly results on Friday.
With just Friday left in the trading week, the three major indexes are on track to end in the red.
The Nasdaq Composite has led the way down with a 0.9% side this week. The S&P 500 and Dow have shed 0.8% and 0.5%, respectively.
— Alex Harring
BlackRock’s Rick Rieder believes the Fed should cut rates one more time in December
The Federal Reserve should cut rates at least one more time in December before stopping to evaluate its path, according to BlackRock bond king Rick Rieder.
The federal funds rate is currently sitting at a target range of between 4.5% to 4.75%, which Rieder said is restrictive for most potential borrowers and homebuyers. Rieder believes the U.S. central bank should reduce this by another quarter-percentage point in December to get it closer to 4%.
“Once you get that rate there, then you can sit back and say okay, what do we need to do from this point going forward?” Rieder said on CNBC’s “Closing Bell” on Thursday afternoon. “I still think they would like to get at least a couple of cuts done into next year, but the pace at which that happens and whether they actually need it gets really called into question.”
— Lisa Kailai Han
See the stocks moving in extended trading
These are some of the stocks moving after the bell:
- Domino’s Pizza — Shares surged more than 7% after Berkshire Hathaway announced a new stake in the pizza chain.
- Applied Materials — The semiconductor equipment manufacturer slid more than 5% after posting a weaker-than-anticipated revenue outlook for the current quarter.
- Palantir Technologies — The defense tech company added nearly 4% after announcing it will transfer its stock exchange listing from the New York Stock Exchange to the Nasdaq.
— Alex Harring
Dow, S&P 500 futures are near flat
Dow and S&P 500 futures were little changed shortly after 6 p.m. ET.
Both slipped around 0.1%. Meanwhile, Nasdaq 100 futures ticked lower by 0.2%.
— Alex Harring