BMO Capital Markets chief investment strategist Brian Belski discusses his market outlook and whether to buy Big Tech stocks.
U.S. equity futures were trading higher Thursday morning, snapping a streak that has seen the Dow fall for four days and the Nasdaq entering correction territory.
The major futures indexes suggest a gain of 0.3% when the opening bell rings on Wall Street.
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On Wall Street, the benchmark S&P 500 index fell 1% on Wednesday as investors tried to figure out how fast the Federal Reserve will roll back economic stimulus to cool inflation.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 35028.65 | -339.82 | -0.96% |
| SP500 | S&P 500 | 4532.76 | -44.35 | -0.97% |
| I:COMP | NASDAQ COMPOSITE INDEX | 14340.255145 | -166.64 | -1.15% |
The S&P 500 fell to 4,532.76 after a sell-off in tech stocks. The Dow Jones Industrial Average retreated 1% to 35,028.65.
Apple shed 2.1% and chipmaker Nvidia fell 3.2%. The technology sector of the S&P 500 has fallen more than 8% this year.
The Nasdaq composite, dominated by technology stocks, lost 1.1% to 14,340.26. The index is 10.7% below its Nov. 19 all-time high.
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Thursday will be another busy day for financial earnings with Travelers, Fifth Third Bancorp, and KeyCorp among the names reporting in the morning. Also transportation giants American Airlines and railroad Union Pacific will report.
In the afternoon, the spotlight will turn to Netflix.
On the economic calendar, the Labor Department is out with its tally of new claims for unemployment benefits for last week. Expectations are for 220,000, down from an unexpected rise to 230,000 the prior week. Continuing claims, which track the total number of unemployed workers collecting benefits, are anticipated to fall 21,000 to 1.580 million, another pre-pandemic low.
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At the same time, the Philadelphia Federal Reserve will release its index of manufacturing activity for eastern Pennsylvania, southern New Jersey, and Delaware. It’s expected to rise 4.6 points this month to a reading of 20.0, up from a 1-year low of 15.4 in December. Any reading above zero means that more manufacturers say business conditions are improving rather than worsening.
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The National Association of Realtors is expected to say that sales of previously owned homes slipped 0.3% to a seasonally adjusted annual rate of 6.44 million units in December. That’s down from a 10-month high of 6.46 million in November.
In Europe, London’s FTSE added 0.2%, Germany’s DAX slipped 0.2% and France’s CAC was off 0.3%.
Asian stock markets rose Thursday after China cut interest rates to shore up economic growth and Japan reported a double-digit rise in exports.
The Nikkei 225 in Tokyo gained 1.1%, the Hang Seng in Hong Kong advanced 3.4% and China’s Shanghai Composite Index was off 0.1%.
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In energy markets, benchmark U.S. crude lost 41 cents to $86.55 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used to price international oils, shed 65 cents to $87.79 per barrel in London.
The Associated Press contributed to this report.
