US stock index futures fell in overnight trading on Wednesday, adding to the session’s key averages.
Futures contracts linked to the Dow Jones Industrial Average lost 53 points. S&P 500 futures were down 0.23% while Nasdaq 100 futures were down 0.24%.
Shares rose during regular trading hours on Wednesday and saw a two-day streak of bad luck as companies tied to reopening the economy showed the way up. The Dow was up 316 points, or 0.93%, while the S&P 500 was up 0.93%. At 1.19%, the Nasdaq Composite was the relative outperformance of the major indices.
Small caps were a particular strength point during the session. The Russell 2000 finished the day 2.35% higher than its best day since March 1st.
The Dow and S&P 500 are less than 1% off regaining their record highs last Friday amid ongoing optimism about the pace of the economic recovery.
“Stocks continue to shoot almost all cylinders and remain in a strong position as the bull stretches across the cyclical, secular and increasingly defensive [sector] with an economy on the offensive, “stated strategists at Evercore ISI.” The sum of that coupled with soaring metals and materials, a Milquetoast dollar and a 10-year rate of 1.55% provides the technical definition of “goldilocks” as we consolidate the strong rally on key support, “the company said .
A busy week of winning season continues on Thursday. A large number of companies will publish quarterly results.
AT&T, DR Horton, Southwest, American Airlines, Union Pacific and Biogen are among the names on deck before the opening bell. Intel, Snap, Mattel, Boston Beer and Seagate Technology will report back after the market closes.
The economic data released on Thursday also gives investors a glimpse of the ongoing economic recovery. Initial jobless claims will be released at 8:30 a.m. CET, with economists expecting a pressure of 603,000 according to Dow Jones estimates. Existing home sales data will be published at 10 a.m. CET.
“Significant stimuli, more of which are coming from the Biden government, have boosted economic forecasts and could raise overall EPS expectations from the consensus forecast of US $ 174 to US $ 180 to US $ 185,” said Tobias Levkovich of Citi recently in a message. “We believe stocks reflect a little closer to $ 190, which suggests that a lot is already priced in and that a shortfall could result in a significant decline,” he added.
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