Stock futures fell on Thursday morning on expectations of a strong start to the week amid a flurry of corporate earnings.
Futures tied to the Dow Jones Industrial Average lost 33 points, or about 0.1%. S&P 500 futures were down 0.13%, while Nasdaq 100 futures slipped 0.23%.
Futures move as Wall Street enjoys July rebound with three key averages reach its highest level in more than a month,
The Nasdaq Composite jumped nearly 1.6% on Wednesday, its fourth positive session in five. The tech-heavy index is up around 3.9% for the week.
Meanwhile, the Dow and the S&P 500 each climbed for a third day of four. The blue-chip index is up about 1.9% for the week, while the S&P 500 is up 2.5% so far.
“It looks like the bulls are now back in the market. We have seen quite a lot of sharp rallies in tech, crypto and other risk assets over the past few days,” said Kelly Cox, US investment analyst at eToro. “Which is remarkable for us, because with some notable weakness in the economy, you would expect to see other segments of the market doing well. But animal spirits are back, at least for now.”
In the early weeks of earnings season, corporate results have been largely stalled so far, helping to calm fears about an impending recession.
However, the news after the bell on Wednesday was mostly mixed. Shares of Alcoa and CSX jumped in extended trading after the companies beat expectations. The automaker posted higher-than-expected earnings, but Tesla shares rose after a slump in automotive gross margins.
United Airlines reported that it returned to profitability during the second quarter, but less than expected results, The stock fell more than 6% in extended trading.
In other corporate news, Carnaval shares were under pressure when the cruise company announced it was selling a additional $1 billion in stock,
On Thursday, AT&T and American Airlines are two of several major companies set to report results before the opening bell. Investors will also keep an eye on the initial jobless claims data, which has been trending upward in recent weeks.