Nasdaq, S&P 500 Futures Slip As Mixed Earnings Report, Economic Worries Keep Sentiment Subdued — Tesla, Nokia Plunge Premarket

Zinger Key Points
  • The market rally stalled on Wednesday amid recession fears.
  • Mixed earnings reports are expected to cloud the near-term market outlook further.
Nasdaq, S&P 500 Futures Slip As Mixed Earnings Report, Economic Worries Keep Sentiment Subdued — Tesla, Nokia Plunge Premarket

The major U.S. index futures are pointing to a mixed open on Thursday, as traders pause following a two-session rally early in the week. Mixed earnings could temper the market mood even as recession fears intensify

Stocks snapped a two-session rally on Wednesday as rising bond yields stirred anxiety among traders. The yield on the 10-year Treasury note rose to 4.136%, marking the highest level since July 2008, underlining the recession fears among investors.

“A steady 3-month/10-year inversion would reinforce the Treasury market's signal that a recession is in the offing, since it has the reputation of predicting a serious economic downturn,” Quincy Krosby, chief global strategist at LPL Financial said in a note.

U.S. Indices' Performance On Wednesday
Index Performance (+/-)   Value
Nasdaq Composite -0.85%   10,680.51
S&P 500 Index -0.67%   3,695.16
Dow Industrials -0.33%   30,423.81

Here’s a peek into index futures trading:

U.S. Futures' Performance On Thursday During Premarket Session
Index Performance (+/-)  
Nasdaq 100 Futures -0.38%  
S&P 500 Futures -0.11%  
Dow Futures +0.13%  
R2K Futures +0.42%  

In premarket trading on Thursday, the SPDR S&P 500 ETF TrustSPY fell 0.18% to $367.85 and Invesco QQQ TrustQQQ moved down 0.50% to $269.14, according to Benzinga Pro data.

On the economic front, the Philadelphia Federal Reserve is scheduled to release the results of the regional manufacturing survey for October at 8:30 a.m. EDT. The business conditions index came in at -3.9 in September, suggesting contraction.

Around the same time, the Labor Department will release its jobless claims report for the week ended Oct. 15. The number of individuals claiming unemployment benefits is expected to have edged up to 230,000 from 228,000 in the previous week.

The National Association of Realtors is set to release its existing home sales September report at 10 a.m. EDT. Economists, on average, expect sales to slow down from 4.8 million in August to 4.7 million in the past month.

The following Fed officials are scheduled to make public appearances:

  • Federal Open Market Committee member and Philadelphia Fed President Patrick Harker (12 p.m. EDT)
  • Fed Governor Philip Jefferson (1:30 p.m. EDT)
  • Fed Governor Lisa Cook (1:45 p.m. EDT)
  • FOMC member and Fed Governor Michelle Bowman (2:05 p.m. EDT)
  • See also: Undervalued or Overvalued, Where Do Equities Stand?

Stocks In Focus:

  • Tesla, Inc. TSLA fell about 6% following its third-quarter revenue miss.
  • Swedish telecom giant Ericsson ERIC slumped by about 16% following an earnings miss.
  • Nokia Oyj NOK declined over 6%, also in reaction to its quarterly results.
  • Alcoa Corp. AA plunged about 10% as it reported a top- and bottom-line miss.
  • Snap, Inc. SNAP rose about 1.75% ahead of its quarterly results due after the close.
  • Railroad operators CSX Corp. CSX and Union Pacific Corp UNP, airlines American Airlines Group, Inc. AAL and Alaska Air Group, Inc. ALK, and AT&T, Inc. T are among the key companies reporting earnings ahead of the market open.

Other Large-Cap Premarket Movers:

  • International Business Machines Corp. IBM rose over 3% in premarket trading following its earnings report released late Wednesday.
  • Danaher Corp. DHR gained over 2.60% on earnings.
  • Miner BHP Group Limited BHP shed over 2.5%.

Commodities, Global Equity Markets:

Crude oil futures were rising for a second straight day and traded above the $86-a-barrel level.

Stocks in the Asia-Pacific region ended Thursday’s session mostly lower, although the Indian, Indonesian and Malaysian markets bucked the downtrend.

The European markets were lower in early trading, extending the losses seen in the previous session.

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Posted In: earnings seasonNasdaq futuresS&P 500 futuresEarningsNewsPenny StocksFuturesPreviewsTop StoriesEconomicsFederal ReservePre-Market OutlookMarketsTrading Ideas