Stock futures were muted in early trading on Thursday, as traders digested a pointy rally from the previous session.
Stock futures tied to the Dow Jones Industrial Averages fell 79 points or 0.23%. S&P 500 futures declined 0.25%, and Nasdaq 100 futures were 0.34% lower.
CarMax shares dropped greater than 12% within the premarket after the used automotive retailer missed profit and revenue expectations. Micron Technology shares slipped 3% within the premarket on disappointing quarterly results. Under Armour shares shifted between gains and losses after the athletics apparel maker chosen Marriott executive Stephanie Linnartz as its next CEO.
The moves followed one other positive session for stocks. On Wednesday, the Dow gained 526.74 points, while the S&P 500 and Nasdaq Composite surged 1.49% and 1.54%, respectively.
All 11 S&P 500 sectors finished the day with gains, led to the upside by energy. Nike and FedEx shares rose on quarterly results, giving some investors hope that earnings are faring decently despite concerns of a downturn. Strong consumer sentiment data for December also gave markets a lift.
While higher earnings results likely factored into the upbeat market sentiment Wednesday, oversold conditions could have contributed to the rally, in keeping with Liz Ann Sonders, Charles Schwab’s chief investment strategist.
“I believe there have been a few earnings reports that got here out that were marginally higher than expected,” she said. “But I also think that the market has been in one other corrective phase, and, on some technical measures, got a bit oversold. Buyers stepped in. The wiggles on a day-to-day basis are hard to place a direct finger on.”
Even with Wednesday’s gains, stocks are on pace to complete the month with losses. The Dow is down 3.51%, while the S&P 500 and Nasdaq have tumbled 4.94% and 6.62%, respectively. All three major averages are slated to interrupt a 3-year win streak and post their worst yearly performance since 2008.
On Thursday, investors awaited jobless claims data.