In the thick of the earnings season, stock futures trended higher in the early hours of Thursday as investors digested the earnings reports from several major companies. The Dow Jones Industrial Average (DJIA) futures were up 0.53%, while futures on the S&P 500 (SPX) moved 0.67% higher, as of 6:14 a.m. EST, Thursday. Meanwhile, the Nasdaq 100 (NDX) futures climbed 0.92% above the flatline.
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The regular trading hours of Wednesday was quite dynamic, with investors struggling to settle on one sentiment. On the one hand, investors were discouraged to bet on technology stocks after the massive fall of Netflix shares (declining about 35%), dragging down other streaming stocks like Disney, Roku, Discovery. Moreover, Tesla, Amazon, and Salesforce also declined on the bearish sentiments.
On the other hand, the strong first-quarter earnings results of Procter & Gamble and IBM salvaged some of the losses, pulling up the Dow.
At market close Wednesday, the Dow gained 0.71%, while the S&P 500 inched down 0.06%. Meanwhile, the Nasdaq 100 ended 1.49% lower.
Nonetheless, some market experts see this dip as an opportunity. Baird analyst Ross Mayfield was encouraged about the strength in demand across industries that major companies are highlighting, notwithstanding the current inflation and supply chain setbacks. “While we expect this year to continue to be volatile, earnings strength and bearish sentiment is a really nice backdrop for a near-term pop,” noted Mayfield.
Interestingly, despite most of the S&P 500 companies that have released Q1 earnings so far topping Street expectations, investors are not happy with the lack of corporate guidance. The absence of a vision is affecting the stock prices despite the slight decline in the U.S. 10-year Treasury yield, which should have otherwise boosted the stock market.
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