Stock futures near flat after Wednesday’s rally
Stock futures turned up slightly Thursday as investors continued reacting to Wednesday comments from Federal Reserve Chair Jerome Powell and picked through a mixed set of corporate news.
Futures tied to the Dow Jones Industrial Average traded 22 points, or 0.1%, higher. Nasdaq-100 and S&P-500 futures each gained 0.2%.
Salesforce’s stock shed 7% in premarket trading on news that co-CEO Bret Taylor is stepping down. Snowflake tumbled about 6% on light product revenue guidance. Discount retailer Dollar General dropped 6% after it cut its full-year forecast, citing higher costs.
On the other hand, Okta shot up nearly 16% after the identity management software company issued an upbeat full-year financial outlook. Five Below and Kroger gained about 9% and 3%, respectively, following reports showing the companies beat expectations for their most recent quarters.
The moves followed a sharp rally Wednesday, with the Nasdaq Composite and the S&P snapping three-day losing streaks after Powell appeared to confirm a slowdown in the central bank’s tightening — a question that’s lingered in recent weeks. The Dow jumped 737.24 points, or 2.2%, on Wednesday, while the tech-heavy Nasdaq Composite and S&P 500 surged 4.4% and 3.1%, respectively.
“Whether intentional or not, Powell sent a message that, in light of the tightening that’s already been done, he’s now more focused on the growth outlook and the employment picture than he is on bringing down inflation to 2%,” said Chris Senyek, chief investment strategist at Wolfe Research.
Wednesday also marked the end of a winning month for the major averages. The Nasdaq rose 4.37% — its second positive month in a row for the first time since a three-month streak ending December 2021. The S&P 500 and Dow rose 5.38% and 5.67%, respectively, to finish their second month of gains for the first time since August 2021.
Investors’ focus Thursday turns to initial jobless claims ahead of the much anticipated November jobs report due out Friday. The payrolls report is expected to provide more clarity on the labor market, and whether it continues to cool. Economists surveyed by Dow Jones estimate the economy added 200,000 jobs in November, down from 261,000 additions in October. They also anticipate that the unemployment rate held steady from the prior month at 3.7%.
Personal income and personal consumption expenditures data is also expected before the bell.