December 6, 2022

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S&P 500 futures changed little as investors digest profits and yield moves

S&P 500 futures changed little as investors digest profits and yield moves

Stock futures were mixed Thursday as traders weighed several major earnings reports.

Dow Jones Industrial Average futures rose 74 points, or 0.2%. S&P 500 futures rose less than 0.1%, and Nasdaq 100 futures were down 0.1%.

Several strong earnings reports boosted the market, with AT&T, American Airlines and IBM all rising in pre-market trading after beating estimates on top and bottom earnings for the fourth quarter.

On the downside, Tesla shares fell 4% in pre-market trading after the electric car maker said Wednesday night that it expects to miss its 2022 delivery target. The company also reported quarterly revenue. That missed analysts’ expectations.

Meanwhile, the 10-year Treasury yield hit 4.18% on Thursday, trading briefly at levels not seen since 2008. It recently settled for the session near 4.13%. Rising rates have been a headwind for equities throughout the year as the Federal Reserve continues to try to cool inflationary pressures not seen in decades.

Thursday’s rally in yields contributed to the end of a two-day winning streak for stocks, with the Nasdaq Composite down 0.85%. The Dow Jones fell 99.99 points, or 0.33%, and the Standard & Poor’s shed 0.67%.

“Despite the recent volatility in the market, expectations of central bank tightening have increased due to inflation
Readings around the world continued to emerge. While there must be more big business
Chris Sinek of Wolf Research said in a note to clients:

On the economic front, the Philadelphia Federal Manufacturing Survey and weekly jobless claims data are expected on Thursday before the bell.

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