Stock futures ticked higher early Friday morning as investors tried to hold on to January’s rally amid concerns over monetary policy and falling earnings.
Futures linked to the Dow Jones Industrial Average rose 45 points, or 0.14%. S&P 500 and Nasdaq 100 futures were up 0.24% and 0.43%, respectively. north current Slid more than 5% in after-hours trading after reporting weak holiday sales and lowering its year-end guidance. Netflix rose 7% after reporting more subscribers than expected, though quarterly results missed analysts’ estimates.
During Thursday’s session, the Dow and S&P 500 both closed lower to record their third consecutive negative day as corporate earnings and economic data signaled a slowdown in the economy. The Dow slipped 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 indices are positive for the year.
However, for the week all three indices are on course to close lower. The Dow is down 3.67% and is on course for its worst week since September. The S&P 500 is down more than 2.5% and could record its worst weekly performance since December. The Nasdaq is down more than 2% and on track to break a two-week winning streak.
“The market is focused and not sure how to react between the market’s backward-looking Fed analysis and the market’s forward-looking and leading indicators,” said Tim Seymour, founder and chief investment officer of Seymour Asset Management, on the CNBC show “Almost money.”
These forward indicators include economic data such as retail sales and industrial production. “This is where the market starts to collapse,” he said.
Going forward, investors will continue to watch corporate earnings with oilfield services name SLB and Ally Financial due to report on Friday. They’ll also be listening carefully to speeches by Fed officials ahead of the February central bank meeting, looking for clues as to the magnitude of the likely upcoming rate hike.
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