Stock futures rise after Dow turns negative for the year

Stock futures rose early Friday morning as investors tried to hang on to January’s rally amid worries about monetary policy and slowing earnings.

Futures tied to the Dow Jones Industrial Average rose 45 points, or 0.14%. S&P 500 and Nasdaq 100 futures gained 0.24% and 0.43%, respectively. Nordstrom fell more than 5% in after-hours trading after reporting weak holiday sales and cutting its year-end forecast. Netflix jumped 7% after reporting more subscribers than expected, although its quarterly earnings missed analysts’ estimates.

In Thursday’s session, the Dow and S&P 500 closed lower for their third straight day of losses as corporate earnings and economic data signaled a slowing economy. The Dow is down more than 252 points, or 0.76%, and is now down 0.31% year-to-date. The S&P 500 lost 0.76% and the Nasdaq Composite lost 0.96%, but both indexes were positive for the year.

For the week, however, all three indices are on track to close lower. The Dow fell 3.67%, on track for its worst week since September. The S&P 500 fell more than 2.5% and could mark its worst weekly performance since December. The Nasdaq fell more than 2 percent and is on track to snap a two-week winning streak.

“The market is focused and not sure how to react between the Fed’s retrospective market analysis versus the upcoming and leading market indicators,” Tim Seymour, founder and chief investment officer of Seymour Asset Management, said on CNBC’s “Quick Money.”

These forward-looking indicators include economic data such as retail sales and industrial production. “This is where the market is starting to crash,” he said.

Going forward, investors will continue to monitor corporate earnings, with SLB and Ally Financial reporting on Friday. They will also be listening closely to remarks by Fed officials ahead of the central bank’s February meeting, looking for clues about the size of a rate hike likely to come.

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