Stock futures ticked higher early Friday morning as investors tried to hold onto the January 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 slipped greater 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 though its quarterly earnings missed analysts’ estimates.
During Thursday’s session, the Dow and the S&P 500 each closed lower to hit their third negative days in a row as corporate earnings and economic data signal a slowing economy. The Dow slipped greater than 252 points, or 0.76% and is now down 0.31% yr to this point. The S&P 500 shed 0.76% and the Nasdaq Composite lost 0.96%, but each indexes are positive for the yr.
For the week, nevertheless, all three indexes are on the right track to shut lower. The Dow is down 3.67%, on the right track for its worst week since September. The S&P 500 is down greater than 2.5% and will notch its worst weekly performance since December. The Nasdaq is down greater than 2% and on pace to interrupt a two-week win streak.
“The market is targeted and will not be sure the way to react between the backward looking Fed evaluation of the market versus the forward and leading indicators of the market,” said Tim Seymour, founder and chief investment officer of Seymour Asset Management, on CNBC’s “Fast Money.”
Those forward indicators include economic data equivalent to retail sales and industrial production. “That is where the market is beginning to break down,” he said.
Going forward, investors will proceed to observe corporate earnings with oilfield services name SLB and Ally Financial set to report Friday. They can even listen closely to speeches from Fed officials ahead of the central bank’s February meeting, searching for clues on the scale of the speed hike that is likely forthcoming.
