Mixed Futures Earnings Because Signals Are Mixed

Stock futures were mixed early Thursday morning as investors gauged poor quarterly results from Meta Platforms (NASDAQ:META) and Credit Suisse (NYSE:CS) as well as revenues from ServiceNow (NYSE: NOW).

Dow Jones Industrial Average Futures (DJIA) gained 0.46% , while those in the S&P 500 (SPX) lost 0.05%, as of 6.55 am EST, Thursday. Meanwhile, the Nasdaq 100 (NDX) futures retreated by 0.60%.

Needless to say, Meta, Credit Suisse, and ServiceNow heavily influence traders’ sentiments before the market. Meta and Credit Suisse fell nearly 20% and 11%, respectively, while ServiceNow rose 12% in pre-market hours.

During Wednesday’s regular trading session, market energy was tense after Alphabet’s (NASDAQ:GOOGL)(NASDAQ:GOOG) disappointing earnings print and Microsoft’s weak guidance. Investor confidence in tech stocks was visibly shaken, and the tech-heavy Nasdaq 100 index closed the day with a 2.26% loss. Meanwhile, the Dow ended slightly higher while the S&P 500 lost 0.74%.

Investors are increasingly uncomfortable with market uncertainty as corporate earnings give them as much reason to worry as they do to celebrate. Many companies post earnings and profits but their outlooks are conservative or bearish. On the other hand, some earnings losses are accompanied by strong guidance. This makes it difficult for investors to understand how to respond rationally, thus indulging in emotional investing. This keeps the markets volatile.

For example, Visa (NYSE:V) beat Wall Street expectations with its earnings results yesterday. However, its guidance seems to exclude the possibility of a recession, according to some experts. This deters the skeptics.

However, market players are fervently following the earnings results for guidance and forward-looking trends, rather than the actual third quarter results. This is because investors are still struggling to find a place and stop the roller coaster, and a guide gives some direction to their expectations.

More big tech profits are on deck, including Amazon (NASDAQ:AMZN), Apple (NASDAQ: AAPL), and Intel (NASDAQ: INTC) which is scheduled to be released on Thursday.

Meanwhile, the economy is gearing up for another possible 75 basis point interest rate hike at next week’s FOMC meeting, followed by the midterm elections a few days later. Markets are expected to remain volatile over the next two weeks, though for now the thread of hope of a Federal Reserve pivot has weakened.

Also, the Bureau of Economic Analysis (BEA) is expected to announce the US’s third-quarter GDP (gross domestic product) growth reading, giving investors a look at whether the economy expanded or contracted in Q3. Many analysts were positive ahead of the reading and expected the economy to snap out of its two-quarter streak of negative growth.

Moreover, Chinese stock markets rebounded after ebbing earlier this week. This brings hope for Chinese stocks such as Alibaba (NYSE:BABA), JD.com (NASDAQ:JD), etc.


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