Equity futures rose early Friday morning as investors tried to hold on to January’s rally amid concerns over monetary policy and slowing earnings.
Futures contracts linked 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. Nordström fell more than 5% in after-hours trading after reporting weak holiday sales and slashing its year-end forecast. netflix jumped 7% after reporting more subscribers than expected, even as its quarterly results missed analysts’ estimates.
During Thursday’s session, the Dow Jones and S&P 500 both closed lower to their third consecutive negative day, as corporate earnings and economic data signaled a slowing economy. The Dow Jones slid 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 are positive for the year.
For the week, however, all three indices are on track to close lower. The Dow Jones is down 3.67%, on track for its worst week since September. The S&P 500 is down more than 2.5% and could post its worst weekly performance since December. The Nasdaq is down more than 2% and 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 and leading and leading market indicators,” Tim Seymour, founder and chief investment officer of Seymour Asset Management, said on the show. CNBC’s “Fast.” Money.”
These forward-looking indicators include economic data such as retail sales and industrial production. “This is where the market starts to crash,” he said.
Going forward, investors will continue to watch corporate earnings, with oil service names SLB and Ally Financial due to report on Friday. They will also be listening carefully to speeches by Fed officials ahead of the February central bank meeting, looking for clues about how much of a rate hike is likely to come.