A trader works on the trading floor of the New York Stock Exchange (NYSE) in New York City, January 26, 2023.
Andrew Kelly | Reuters
Stock futures fell on Friday morning as investors look ahead to earnings and economic reports due later in the day.
Futures linked to the Dow Industrial Average fell 42 points, or 0.12%. S&P 500 futures and Nasdaq 100 futures fell 0.36% and 0.7%, respectively. Intel shares fell more than 9% in after-hours trading after a disastrous earnings report that missed the top and bottom lines.
Stocks rose in regular trading on Thursday, hailing a better-than-expected fourth-quarter gross domestic product report that raised hopes the US economy could experience a soft landing as the Federal Reserve raises rates to tame inflation.
The Dow Jones Industrial Average gained more than 205 points, or 0.61%, snapping its fifth consecutive winning streak, the first streak of that length since October. LS&P 500 rose 1.10% and the tech-heavy Nasdaq Composite jumped 1.76%.
All three indices are positive for the week and the month. The Dow and the S&P 500 gained 1.7% and 2.2% this week, respectively. The Nasdaq rose 3.3% on the week and is poised for its best monthly performance since July.
“This year’s stock rally is impressive and should not be ignored,” Chris Zaccarelli, chief investment officer for the Alliance of Independent Advisors he said in a Thursday note. “Unfortunately, the Fed is likely to start talking to the market again, early next week, so prepare for volatility again this year; we could be in the eye of the hurricane and we’re not completely out of the woods yet.”
On Friday, investors will be watching economic reports that will give more information about the state of inflation. Personal income and expenses and pending home sales for December are due in the morning. The personal consumption expenditures price index, a preferred measure of inflation for the Federal Reserve, is also due. Consumer sentiment for January will also be released.
It is some of the latest data that will be released before the next meeting of the Fed, which starts at the end of January. Investors are currently expecting a 0.25 percentage point interest rate hike from the central bank.
Earnings season also continues. American Express, Colgate-Palmolive and Chevron are among companies scheduled to report quarterly results on Friday. Investors may be closely watching Chevron’s report after the company announced a $75 billion share buyback and dividend increase on Wednesday.