A trader works on the floor of the New York Stock Exchange (NYSE) in New York, January 26, 2023.
andrew kelly | Reuters
Stock futures fell Friday morning as investors anticipate earnings and economic reports expected later in the day.
Futures contracts linked to the Dow Industrial Average fell 42 points, or 0.12%. S&P 500 and Nasdaq 100 futures fell 0.36% and 0.7% respectively. Intel shares fell more than 9% in after-hours trading following a dismal earnings report that missed the top and bottom results.
Stocks rose in regular trading on Thursday, encouraging a better-than-expected fourth-quarter gross domestic product report that fueled hopes the U.S. economy could experience a soft landing as the Federal Reserve hikes rates for control inflation.
The Dow Jones Industrial Average gained more than 205 points, or 0.61%, marking its fifth straight winning streak, the first streak of this length since October. The S&P 500 rose 1.10% and the tech-heavy Nasdaq Composite jumped 1.76%.
All three indices are positive for the week and the month. The Dow Jones and S&P 500 gained 1.7% and 2.2% respectively this week. The Nasdaq is up 3.3% on the week and is expected to post its best monthly performance since July.
“This year’s stock market rally is impressive and should not be ignored,” said Chris Zaccarelli, chief investment officer of the Independent Advisor Alliance. said in a Thursday note. “Unfortunately, the Fed is likely to start depreciating the market again as early as next week, so be prepared for volatility again this year; we may be in the eye of the hurricane and not completely out of the woods yet.”
On Friday, investors will be watching economic reports which will give more insight into the state of inflation. Personal income and expenses and pending home sales for December are due in the morning. The Personal Consumption Expenditures Price Index, a favorite Federal Reserve measure of inflation, is also due. Consumer sentiment for January will also be released.
These are some of the latest data to be released ahead of the Fed’s next meeting, which begins in late January. Investors are currently expecting a 0.25 percentage point interest rate hike from the central bank.
The earnings season also continues. American Express, Colgate-Palmolive and Chevron are among the companies due to release their quarterly results on Friday. Investors may be watching Chevron’s report closely after the company announced a $75 billion share buyback and increased dividends on Wednesday.