Finance News

Dow futures modified little because the index tried to make features for the fifth consecutive day

A person walks at Wall Street subway station in New York City.

Angela Weiss | AFP | Getty Images

Stock futures changed little in Wednesday's overnight trading at the start of the earnings season, giving investors a clearer picture of the general health of American companies.

Futures on the Dow Jones Industrial Average fell 63 points, indicating a loss of 48 points on Thursday's opening. S&P 500 futures fell 0.22%, while Nasdaq 100 futures fell 0.55%.

Investors will monitor a number of corporate results on Thursday, including Bank of America and Morgan Stanley.

The winning season started on Monday and the results so far are from the United States. & # 39; The largest banks were mixed. Goldman Sachs slightly exceeded expectations when it reported earnings on Wednesday, supported by a 93% increase in trading volume. JPMorgan Chase also reported better than expected results, while Wells Fargo lost $ 2.4 billion and lowered its dividend to 10 cents a share.

Johnson & Johnson, Charles Schwab, Abbott Labs and Domino & # 39; s Pizza will also report before the market opens on Thursday, while investors will watch Netflix's second quarter earnings report after the bell.

Retail sales for June will also be released on Thursday. Economists surveyed by Dow Jones expect a 5.2% increase as the economy continues to open up. The 17.7% increase in May exceeded estimates and was the largest ever measured.

Shares ended the session higher Wednesday, reflecting positive news regarding a potential coronavirus vaccine and strong earnings results from Goldman Sachs. The Dow rose 227.51 points, or 0.9%, in its fourth consecutive positive session. The 30-share index passed the 27,000 mark for the first time in more than a month, although it was unable to hold this level to the end, and ended the session at 26,870.10.

The S&P 500 rose 0.9%, while the Nasdaq Composite underperformed only 0.5%. The tech-heavy index was weighed down by weakness in big tech stocks. Amazon fell more than 2%, while Netflix, Microsoft and Alphabet also closed the red as investors switched from these names to sectors most sensitive to the reopening of the economy, such as cruise companies.

Moderna's shares ended the session 6.9% higher after data published by the New England Journal of Medicine showed that the company's coronavirus vaccine in its early human study had a "robust" or neutralizing immune response in all 45 patients Raised antibodies.

Norwegian Cruise Line and Royal Caribbean both rose more than 20% on Wednesday, while Carnival Corp. grew by 16.2%.

With Wednesday's profit, the S&P 500 is now less than 5% from its February all-time high recovery, although some investors believe the rally has gone too far and too fast given the market's uncertainties.

"We're not out of the woods yet, and we're still a long way from returning to the pre-COVID-19 economy," said Nate Fischer, chief investment strategist at Strategic Wealth Partners.

"The market needs a health solution because the economy had to be closed due to a health problem. So far we have had tax and financial support for this problem. Until a real medical device is found, the market will do it." remain volatile, "he added.

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