U.S. Stock Futures Hold Steady After Record Day
U.S. stock futures were relatively unchanged on Wednesday night, following a record day for stocks. Futures tied to the Dow Jones Industrial Average fell 18 points, or 0.04%, while S&P 500 futures slid 0.08%, and Nasdaq-100 futures moved 0.1% lower.
In extended trading, American Eagle fell more than 13% after providing a weak forecast for the holiday quarter, while Five Below surged around 14% on the heels of a better-than-expected third-quarter report.
The three major averages saw solid gains during Wednesday’s trading session, with the S&P 500 and the Nasdaq Composite scoring new closing records. The Dow Jones Industrial Average also closed above 45,000 for the first time.
Tony Pasquariello, global head of hedge fund coverage at Goldman Sachs, believes that there is still “gas in the tank” for the market, and that the primary trend is higher. He cites growth, the Federal Reserve, and technology as key factors that could continue to drive the rally.
The ADP report showed that private payrolls grew less than expected in November, with companies adding 146,000 positions. Investors are now awaiting key economic data, including initial jobless claims and nonfarm payrolls data, which are set to be released this week.
Federal Reserve Chair Jerome Powell said that the U.S. economy is strong enough for the Fed to move carefully on rate cuts, citing a strong labor market and lower downside risks. Fed funds futures trading suggests a 78% likelihood that the central bank will trim rates by a quarter point at its December meeting.
Earnings reports are scheduled to be released Thursday, including Dollar General, Signet Jewelers, and Kroger, as well as Hewlett Packard Enterprise and Ulta Beauty in the afternoon.
