Traders work on the floor of the New York Stock Exchange during morning trading on February 14, 2024 in New York City.
Michael M. Santiago | Getty Images
Stock futures are were little changed on Thursday night as investors attempt to carry forward the broader market’s strong momentum.
Futures tied to the Dow Jones Industrial Average slipped 27 points, or 0.07%. S&P futures inched up 0.03%, while Nasdaq 100 futures added 37 points, or 0.2%.
Several stocks reporting quarterly results posted major moves in after-hours trading. Shares of food delivery service DoorDash dropped 8.5% on a wider-than-expected loss, while digital advertising company Trade Desk popped about 18.9% after topping analysts’ fourth-quarter revenue estimates and offering an upbeat outlook for the first quarter. Shares of semiconductor equipment maker Applied Materials also jumped 12% on positive earnings results.
Investors have spent the week assessing the direction of the U.S. economy, particularly after this week’s hotter-than-expected inflation data and a surprisingly steep decline in January retail sales, which may indicate further weakness in consumer spending. The three major indexes ended Thursday’s trading session in the green, with the S&P 500 notching yet another record high, maintaining its level above 5,000.
So far this week, the broad market index is up by less than 0.1%. The Dow, meanwhile, is 0.3% higher for the week after raking in its biggest one-day loss since March 2023 on Tuesday. The Nasdaq, however, is lower by 0.53%.
Investors are also eyeing Treasury yields, which fell on Thursday.
“It is not all bad news,” Adam Turnquist, chief technical strategist for LPL Financial, said about the yield levels. “Market expectations and Federal Reserve (Fed) monetary policy projections have become closer aligned, alleviating a source of market volatility. Furthermore, better-than-expected economic data has been a driving force of the market’s repricing of rate cuts, reducing the likelihood of a hard-landing scenario.”
Producer price index data, which measures prices on final demand items, will be released Friday morning.
‘Equities will do their job’ this year, says BlackRock’s Rick Rieder
Investors should still expect to get solid returns from the equity market this year, according to BlackRock’s chief investment officer of global fixed income Rick Rieder.
“I think equities will do their job. I think equities will get you know 10%, 12%, maybe 15% return this year. That’s a pretty good portfolio, and I don’t think you need long bonds to hedge,” Rieder, who oversees $2.8 trillion in fixed income assets for the firm, told CNBC on Thursday afternoon. “I think today you can build a portfolio that’s reasonably stable, and work your way through.”
Sticky service-level inflation will begin to balance out over the next couple of months, Rieder added. He expects inflation is moderating and will allow for a “normal” economy with a roughly 4% nominal GDP growth. Consumer spending should also continue holding up, he said.
— Pia Singh
These are the stocks posting the biggest moves in extended trading
In this photo illustration, the Coinbase logo is seen displayed on a mobile phone screen.
Idrees Abbas | SOPA Images | Lightrocket | Getty Images
Check out the companies making headlines in after-hours trading.
- Coinbase – Shares of the cryptocurrency exchange gained 13% in extended trading after the company posted fourth-quarter earnings of $1.04 per share on revenue of $954 million. Analysts had expected a 1 cent per share loss on revenue of $822 million, according to LSEG.
- Applied Materials – Shares of the semiconductor equipment maker popped 11% in after-hours trading as earnings topped estimates and the company gave a rosy outlook for the fiscal second quarter. First-quarter earnings per share of $2.13, excluding items, bested estimates of $1.90 per share, from LSEG. Revenue for the period came out at $6.71 billion, topping the $6.48 billion estimate.
- Toast – The maker of restaurant point of sale systems saw shares rise 3% after hours following its fourth-quarter results. The company posted a loss of 7 cents per share, which was narrower than the 11 cent per share loss analysts expected, according to LSEG. Revenue of $1.04 billion came in about in line with expectations of $1.02 billion.
For the full list, read here.
— Pia Singh
