US stock index futures were slightly lower during Wednesday’s early morning trading after the Dow and S&P closed at record highs over the course of the earnings season.
Futures contracts linked to the Dow Jones Industrial Average rose 35 points. The S&P 500 futures also fell, while the Nasdaq 100 futures barely changed.
During Tuesday’s regular trading session, the Dow rose around 15 points and ended the day at an all-time high. It was the third straight day of profits and the fifth positive session of the 30-stock benchmark in the last six. At the start of the session, the Dow had risen about 150 points and also hit an intraday record high.
The S&P rose 0.18% in its ninth positive session in the last ten, hitting both record intraday and closing highs. It was the 70th intraday high of the benchmark index in 2021 and the 57th record close of the year.
The Nasdaq Composite gained 0.06% for its third positive session of four. Facebook weighed on the tech-heavy index, with the social media company’s shares plummeting 3.9%.
Microsoft and Alphabet were in the headlines on Tuesday after the market closed, with both exceeding sales expectations. Microsoft shares rose 2.3% in pre-market trading.
Texas Instruments shares plunged 4% ahead of market entry after the company missed sales estimates, while Visa fell 2.5% despite beating sales and bottom line results. Enphase Energy rose 12.7% after reporting record sales amid headwinds in the supply chain.
“This winning season has been about price momentum and whether consumers will be able to handle rising costs,” said Ed Moya, senior analyst at Oanda. “So far it seems that the consumer can handle it,” he added.
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So far, around 30% of the S&P 500 has reported gains. Of the names that posted quarterly updates, 82% exceeded earnings expectations while 80% exceeded sales estimates. Strong results were key to pushing key averages to new highs.
“We are seeing signs that there may be more gains in the last two months of the year,” said Ryan Detrick, chief market strategist at LPL Financial. “Seasonal tailwinds, improving internals, and clear signs of a peak in the Delta line all offer potential energy for stocks at year-end, so we stick to our overweight recommendation.”
Robinhood stocks were beaten, falling 11% the day after the trading app reported sales well below expectations, largely due to the weakness of crypto trading.
A busy week of earnings continues on Wednesday, with Coca-Cola, McDonald’s, Bristol-Myers, Boeing, General Motors and Harley-Davidson on deck under the names before the market opens. Ford, eBay and Yum China will provide quarterly updates after the market closes.
On the economic front, the U.S. durable goods order information is released at 8:30 p.m. ET.
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