Stock futures fell slightly in overnight trading on Wednesday after the blue-chip Dow Jones Industrial Average hit record highs amid solid corporate earnings.
Dow futures fell 35 points. S&P 500 futures and Nasdaq 100 futures both traded 0.1% lower.
The 30-stock average jumped about 150 points, hitting an intraday record on Wednesday, surpassing its mid-August high. The S&P 500 climbed 0.4% for its sixth consecutive positive day, just 0.2% below its all-time high. The tech-heavy Nasdaq Composite closed the session a little lower on Wednesday, however.
“The Dow hit a new all-time high today, further demonstrating the resilience of dip buyers and the importance of cyclical companies in the stock market rally,” said Chris Zaccarelli, CIO, Independent Advisor Alliance.
Investors watched the third quarter earnings season to assess earnings growth and signs of cost pressures and supply chain disruptions. Of the roughly 70 S&P 500 companies that have reported results to date, 86% achieved profits that exceeded analysts’ expectations, according to Refinitiv.
“At the moment there are no signs of widespread margin erosion. Perhaps so much money spills over it that the prices are currently largely being passed on,” said Jim Reid, head of thematic research at Deutsche Bank, in a statement.
After a loss of sales in the third quarter, IBM recorded a price loss of more than 5% in the extended trade. The two most important business areas – Global Services and the business with Cloud & Cognitive Software – fell short of the estimates.
Tesla shares fell slightly in after-hours trading on Wednesday, even after the electric automaker posted record third-quarter profits and earnings that exceeded expectations.
Railroad giant CSX rose more than 3% in expanded trading after an unexpected earnings report was released.
On Wednesday, the Food and Drug Administration approved booster shots of Covid vaccines from Johnson & Johnson and Moderna, a crucial step in distributing additional doses to tens of millions of people. US regulators also approved mixing and matching vaccines.