Stock index futures inched lower on Thursday, as a couple of disappointing earnings reports weighed on the market.
S&P 500 futures (SPX) -0.1%, Nasdaq 100 futures (US100:IND) -0.1% and Dow futures (INDU) -0.2%.
The 10-year Treasury yield (US10Y) unchanged at 4.49%. The 2-year yield (US2Y) unchanged at 4.85%.
“Markets finally ran out of steam yesterday, with the S&P 500 narrowly ending its run of four consecutive gains,” Deutsche Bank’s Jim Reid said.
U.S. stocks on Wednesday ended mixed, as a gain in big banks countered a post-earnings slide in Uber (UBER) and a decline in Intel (INTC) sparked by a guidance cut.
Uber (UBER) failed to impress investors after its 2024 gross bookings guidance fell short of expectations.
Airbnb (ABNB) dropped 8% in premarket trade as its Q2 revenue guidance came short of the high expectations.
Arm (ARM) also slumped 8% in premarket trade, after the British chip design firm issued guidance that failed to match up to the lofty expectations.
“The pause for breath was partly due to some disappointing earnings releases, but it also comes on the back of its strongest 4-day rally since November, so it was always going to be hard to maintain that pace,” Reid added.
Rate cuts are also back in the limelight with the Bank of England’s policy decision expected to come at 7:00 am ET, a day after Sweden’s central bank became the second major economy to cut interest rates.
Initial jobless claims rose more than expected in the past week, as it came at 231K as compared to the expected rise of 212K.
Initial claims are better at flagging labor market upturns than downturns, Pantheon Macroeconomics said.
“Marked labor market downturns in the past few decades have seen payrolls start to weaken either before or at the same time that claims have increased,” said Pantheon Macro.
The results of a $25B, 30-year bond auction is due during market hours, while the Fed’s balance sheet will land after market close.