December 10, 2022

Stock futures drop as investors weigh recent earnings streams

Stock futures drop as investors weigh recent earnings streams

Stock futures fell on Thursday as investors responded to the latest batch of quarterly results and anticipation of a slew of Federal Reserve speakers.

And futures contracts related to the Dow Jones Industrial Average fell 192 points, or 0.6%. S&P 500 futures fell 0.6%, while Nasdaq 100 futures also fell 0.6%.

The Bath & Body Works retailer jumped more than 20% after it beat revenue forecasts and doubled what was expected for earnings per share. Cisco stock rose more than 3% after beating earnings and revenue estimates.

The latest moves came on the heels of a bearish day on Wall Street, the second in three days. The S&P 500 and Nasdaq Composite fell 0.83% and 1.54%, respectively. The Dow Jones Industrial Average lost 39.09 points, or 0.12%.

Downward pressure arose from double routing from Target, which reported declining sales as inflation put a damper on shoppers heading into the holiday season. The Minneapolis-based chain closed down 13%, while its future guidance cast doubt on other retailers.

Target followed better-than-expected reports earlier in the week from Home DepotAnd the Louie And the Walmartwho beat expectations and said inflation wasn’t hitting them as hard.

“There is an adjustment process going on” by the companies, said Thomas Martin, senior portfolio manager at GLOBALT Investments. “I’m not saying this is a reason not to take action in a financial portfolio, but trying to chase things away usually ends up making one bad decision and then another bad decision and another bad decision.”

Tomorrow, investors will also be watching weekly jobless claims, the latest reports on October housing starts and building permits, and manufacturing surveys from the Federal Reserve Bank of Philadelphia and Kansas City.

Earnings season continues Thursday with additional retailers, including Macy’s and Kohl’s before the bell and Gap after.