U.S. Stocks May Move Back To The Upside On Upbeat Earnings News
Following the sharp pullback seen in the previous session, stocks are likely to move back to the upside in early trading on Thursday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 213 points.
A positive reaction to the latest batch of corporate earnings news may contribute to an initial rebound on Wall Street.
Shares of Disney (DIS) are surging 5.7 percent in pre-market trading after the entertainment giant reported better than expected fiscal first quarter results.
Disney CEO Bob Iger also announced the company would be cutting 7,000 jobs as part of a broader cost-cutting and restructuring plan.
Snack and beverage giant PepsiCo (PEP) may also see initial strength after reporting fourth quarter results that exceeded analyst estimates, raising its annualized dividend by 10 percent and announcing a $1.0 billion stock buyback.
Meanwhile, shares of Mattel (MAT) may come under pressure after the toymaker reported fourth quarter results that missed analyst estimates on both the top and bottom lines.
In U.S. economic news, a report released by the Labor Department showed first-time claims for U.S. unemployment benefits rebounded by slightly more than expected in the week ended February 4th.
The Labor Department said initial jobless claims rose to 196,000, an increase of 13,000 from the previous week’s unrevised level of 183,000. Economists had expected jobless claims to inch up to 190,000.
The uptick came after jobless claims decreased in four out of the five previous weeks, falling to their lowest level since hitting 181,000 in the week ended April 23, 2022.
Stocks moved sharply lower during trading on Wednesday, giving back ground following the rally seen in Tuesday’s session. The major averages all moved to the downside on the day, with the tech-heavy Nasdaq leading the pullback.
The major averages finished the session near their worst levels of the day. The Nasdaq tumbled 203.27 points or 1.7 percent to 11,910.52, the S&P 500 slumped 46.14 points or 1.1 percent to 4,117.86 and the Dow slid 207.68 points or 0.6 percent to 33,939.01.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Thursday. While China’s Shanghai Composite Index jumped by 1.2 percent, Japan’s Nikkei 225 Index edged down by 0.1 percent and Australia’s S&P/ASX 200 Index fell by 0.5 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the U.K.’s FTSE 100 Index has climbed by 0.7 percent, the German DAX Index and the French CAC 40 Index are both up by 1.2 percent.
In commodities trading, crude oil futures are sliding $0.78 to $77.69 a barrel after jumping $1.33 to $78.47 a barrel on Wednesday. Meanwhile, after rising $5.90 to $1,890.70 an ounce in the previous session, gold futures are inching up $0.80 to $1,891.50 an ounce.
On the currency front, the U.S. dollar is trading at 130.60 yen versus the 131.40 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.0773 compared to yesterday’s $1.0712.
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