Inventory futures slide because the S&P 500 makes an attempt to increase its three-day profitable streak
A woman carries an umbrella as she walks past the New York Stock Exchange (NYSE) in New York City on February 9, 2017.
Drew Angerer | Getty Images
Futures contracts linked to major U.S. stock indices were slightly lower during Wednesday night’s overnight session as Wall Street attempted to continue the S&P 500’s winning streak on Thursday.
Dow futures fell 64 points. S&P 500 futures and Nasdaq 100 futures also traded in slightly negative territory.
The moves in extended trading came after a relatively calm day on Wall Street, with the S&P 500 rising 0.1% for a third straight day.
The Dow Jones Industrial Average was up 36 points while the Nasdaq Composite was down less than 0.1% on Amazon stocks falling less than 0.1% during the regular session.
Investors watched a handful of stocks, including eBay, PayPal, and Qualcomm, in expanded trading after each posting a quarterly earnings report.
Of the three, eBay slightly outperformed eBay, with the after-hours market up more than 9% after outperforming both profit and profit margins and giving a rosier than-expected forecast for the first quarter.
PayPal gained nearly 3% while Qualcomm fell more than 7% after sales for the first quarter of fiscal year were below consensus estimates.
Apple gained 2% in expanded trade after CNBC reported it was close to signing a deal with Hyundai-Kia to manufacture driverless cars. The news that the two might be close to a deal comes after Hyundai said in January that it was in preliminary talks with the iPhone maker to develop a car.
The macro outlook remained in focus as traders prepared for the final iteration of the Department of Labor’s unemployment claims report, due at 8:30 a.m. ET on Thursday. Economists polled by Dow Jones expect 830,000 claims for the first time in the week ending January 30th.
If claims were received as expected, it would represent a slight decrease from the 847,000 original claims the previous week.
Economic recovery and market performance have been tracking the severity of Covid-19 in the United States. Some strategists said the introduction of vaccines could result in higher interest rates, if not outperformance in cyclical stocks or bank stocks.
“Sentiment about Covid vaccines is still very low. This will improve as investors understand that vaccines produce either 1) immunity or 2) mild reactions (low severity),” wrote Dennis DeBusschere, ISI strategist at Evercore , on Wednesday in an email.
“As investors and society at large recognize that low severity is really important, sentiment about vaccines will improve and [Treasury] Returns will have one more gap, “he added.
The benchmark’s 10-year US Treasury note yield rose 3 basis points to 1.14% on Wednesday.