Stock futures edged higher in early trade Thursday after better-than-feared earnings and strong consumer confidence data helped boost shares for a second day.
Stock futures, which are linked to the Dow Jones Industrial Averages, gained 25 points, or 0.07%, while S&P 500 futures were slightly higher and Nasdaq 100 futures were up 0.11%.
Micron Technology shares fell 2% in overnight trading on disappointing quarterly results. Under Armor shares alternated between gains and losses after the athletics apparel maker picked Marriott executive Stephanie Linnartz as its next CEO.
Overnight moves followed another positive session for equities. During regular trading on Wednesday, the Dow gained 526.74 points, while the S&P 500 and Nasdaq Composite gained 1.49% and 1.54%, respectively.
All 11 sectors of the S&P 500 ended the day with gains led higher by energy. Nike and FedEx shares rose on the quarterly results, giving some investors hope that earnings will perform decently despite fears of a downturn. Strong consumer sentiment data for December also boosted markets.
While better earnings results were likely factored into Wednesday’s upbeat market sentiment, oversold conditions may have contributed to the rally, according to Charles Schwab’s chief investment strategist Liz Ann Sonders.
“I think there were a couple of earnings reports that were a little better than expected,” she said. “But I also think the market was in another corrective phase and was a bit oversold on some technical actions. The buyers intervened. The daily fluctuations are difficult to determine directly. “
Even with Wednesday’s gains, stocks are poised to end the month in losses. The Dow is down 3.51%, while the S&P 500 and Nasdaq are down 4.94% and 6.62%, respectively. All three major averages are set to break a 3-year winning streak and post their worst annual performance since 2008.
On Thursday, investors will be waiting for Carmax earnings results and jobless claims data.
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