Stock Futures Surge on Earnings and Labor Data Anticipation
A Brighter Outlook for Stocks
Stock futures painted a rosy picture on Thursday as investors eagerly awaited a flurry of quarterly earnings reports and a crucial labor market data release later this week.
- Dow Jones Industrial Average futures climbed 160 points or a respectable 0.42%.
- S&P 500 futures jumped by an impressive 0.53%.
- Nasdaq 100 futures soared by an encouraging 0.61%.
After-Hours Earnings Fireworks
After the closing bell, chipmaker Qualcomm sparked gains, surging over 3% on better-than-expected adjusted earnings and bullish sales guidance. However, restaurant delivery service DoorDash faced a setback, plummeting 15% after reporting a wider loss per share compared to analysts’ estimates.
Fed’s Cautious Approach Soothes Markets
The prior day’s choppy trading on Wall Street subsided after investors digested the Federal Reserve’s decision to halt interest rate increases. Fed Chair Jerome Powell hinted that a rate hike was unlikely to be the next move, despite lingering inflation concerns.
Despite early market exuberance, all three major stock indexes cooled off by Wednesday’s close. The Dow finished marginally higher by 0.2%, while the S&P 500 and Nasdaq Composite ended the session slightly lower by around 0.3%.
Economic Data in the Spotlight
Economic data takes center stage this Thursday, with reports on weekly jobless claims, first-quarter worker productivity and unit labor costs, and March’s trade deficit and factory orders. All these releases set the stage for the highly anticipated April jobs report on Friday.
Earnings Season in Full Swing
Thursday’s earnings calendar features standout companies like Apple and Amgen reporting after hours, alongside Coinbase, DraftKings, Moderna, and Peloton before the market opens. These results will provide valuable insights into the health of various sectors and the impact of economic conditions.
Key Takeaways
- Stock futures are advancing, fueled by earnings expectations and a dovish Fed stance that allays rate hike concerns.
- Qualcomm and DoorDash showcased contrasting after-hours performance, driven by earnings results.
- Investors are closely monitoring economic data releases and corporate earnings this week for cues on market direction.
- The April jobs report on Friday looms large as a potential market mover.
Data sourced from: cnbc.com
