US stock index futures barely changed early Thursday after the Dow closed at record highs.
Futures contracts linked to the Dow Jones Industrial Average showed an opening loss of less than 20 points. The S&P 500 futures and Nasdaq 100 futures also remained virtually unchanged.
During Wednesday’s session, the Dow gained 97 points and ended on a new closing high. The 30-share benchmark index also set a new intraday record after rising nearly 200 points at one point.
The S&P 500 was up 0.1% while the Nasdaq Composite was down 0.4% for its fourth consecutive negative session and longest daily streak since October. The tech-heavy index and the S&P 500 are each lower for the week. The Dow is on track to break a two-week losing streak.
Netflix, Amazon, and Facebook were among the tech names that fell on Wednesday, falling more than 1% each.
“The tech sector’s earnings momentum versus the broader market peaked in late May 2020,” said Keith Lerner, chief market strategist at Truist. “Given that we expect the economy to grow well above trend this year and next, value will benefit. If you look at value indices, they are dominated by financials and tend to be stronger in economics sensitive sectors engaged, which are more strongly committed to an economic recovery. “
The Russell 1000 Value Index is up 16% this year while the Russell 1000 Growth Index is up 5%.
In the data area, the first unemployment claims will be published on Thursday. Economists polled by Dow Jones expect a pressure of 527,000. The data comes one day before the job report is published on Friday in April.
“Employment growth has been strong and up for the past three months. April employment numbers are expected to pick up again as layoffs fell by one-sixth during the month,” said Brad McMillan, chief investment officer, Commonwealth Financial Network.
However, he added that the concerns remain in the market. For one thing, the federal government’s stimulus packages have boosted growth, and at some point the economy will have to return to organic growth.
Busiest week of earnings is now in the rearview mirror, but some companies have yet to deploy their quarterly updates.
Anheuser-Busch InBev, Regeneron, ViacomCBS and Kellogg are among the names on deck in front of the opening bell. Dropbox, Expedia, Roku, Beyond Meat, Shake Shack and Square will report back after market closes.
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