Thursday February 16, 2023

// February 16th, 2023 // Daily News

Stock futures slip Thursday as traders digest earnings, latest data


The full effect of the Fed’s rate hikes not being appreciated by the market, says Solus’ Dan Greenhaus

Stock futures were little changed Thursday as traders assess retail sales data that pointed to a strong U.S. economy.

Futures linked to the Dow Jones Industrial Average shed 96 points, or 0.27%. S&P 500 futures dipped 0.42% and Nasdaq-100 futures fell 0.50%. Earnings beats sent some shares higher – Roku surged 12% in premarket trading, Cisco added more than 3% and Hasbro ticked 1% higher.

Stocks closed slightly higher Wednesday even after a stronger-than-expected January retail sales report suggested the Federal Reserve may have further to go in its efforts to tame inflation. The Dow Jones Industrial Average rose 38.78 points, or 0.11%, and the S&P 500 climbed 0.28%. Meanwhile, the Nasdaq Composite notched its third straight day of gains, rising 0.92%.

For some market observers, that suggested stocks could have more room to run from here — even after their strong start to the year.

“It looks like this rally does have some legs, and you can’t fight some of the tape right now,” Victoria Greene, chief investment officer at G Squared Private Wealth, said Wednesday on CNBC’s “Closing Bell: Overtime.”

“The Fed is saying that they’re going to be hawkish, but the technicals are saying this rally is in, and I really don’t think we’re going to retest those October lows anymore, because we’ve hit some really important technical supports,” Greene said.

Wall Street is expecting further economic insight from a slew of reports Thursday. For starters, another inflation gauge will be out in the morning, the January producer price index. Dow Jones estimates are calling for a rise of 0.4%, compared to December’s decline of 0.5%.

Weekly jobless claims data, as well as January’s housing starts report, are also due Thursday.

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