Nasdaq, S&P Futures Slip After Walmart, Cisco Earnings; Spotlight Shifts To Data, Fed Speeches

Benzinga - by Shanthi Rexaline, Benzinga Editor.

Trading in stock futures point to a lower start on Thursday after the broader market closed at a two-month high in the previous session despite the slowdown in momentum. Some tech earnings disappointments will likely pressure stocks belonging to the sector. Walmart, Inc. (NYSE:WMT) shares slipped following its quarterly results, apparently in reaction to some cautious management commentary.

On the Main Street front, traders may closely monitor the jobless claims data, the results of two separate housing markets and manufacturing sectors, and a slew of Fed speakers. Bond yields are easing after Wednesday’s modest gain.

Cues From Wednesday's Trading:

The major averages closed Wednesday’s session modestly higher, although well off the session’s highs. The producer price inflation report confirmed the slowdown in inflation, with the headline inflation declining 0.5%, the biggest drop since April 2020. Meanwhile, retail sales edged down 0.1% month-over-month, underlining the soft patch seen in the economy.

The Nasdaq Composite and the S&P 500 indices opened higher but surrendered their gains and fell below the flat line by the mid-session. The averages bounced back in the afternoon before ending higher. While the Nasdaq closed at a 3-1/2 month high, the broader S&P 500 ended at a two-month high.

The Dow Industrials hovered in positive territory throughout the session and advanced for a fourth straight session. Twenty-two of the 30 Dow components advanced, with Intel Corp. (NASDAQ:INTC) and Disney, Inc. (NYSE:DIS) leading the charge with over 3% each gain. The blue-chip average ended at the highest level since mid-August.

Among the S&P sector indices, IT services advanced notably, while communication services, consumer staples, and financial and material stocks also found buying interest. On the other hand, utility and energy stocks came under selling pressure.

US Index Performance On Tuesday

Analyst Color: Carson Group’s Ryan Detrick says the improving market breadth bodes well for the market. He noted that about 97% of the stocks in the S&P 600 stocks, which fall in the small-cap category, closed green on Tuesday.

“That was the best day in 12 years. You rarely see days like this in a bear market,” the analyst said. “This was more than ‘just a bear market rally’ like they are telling us,” he added.

Futures Today

Futures Performance On Thursday

In premarket trading on Thursday, the SPDR S&P 500 ETF Trust (NYSE:SPY) edged down 0.16% to $448.96, and the Invesco QQQ ETF (NASDAQ:QQQ) moved down 0.31% to $384.42, according to Benzinga Pro data.

Upcoming Economic Data:

Fed Vice Chair for Supervision Michael Barr is due to speak at 7:10 a.m. ET.

The Labor Department is scheduled to release its weekly jobless claims report at 8:30 a.m. ET. Economists, on average, expect the number of individuals claiming unemployment benefits to come in at 220,000 in the week ended November 11 compared to 217,000 in the week ended November 4.

The Labor Department will also release the October import and export prices report at 8:30 a.m. ET. Export prices may have declined 0.5% month-over-month in October, following a 0.7% increase in September.

The Philadelphia Fed is due to release the results of its regional manufacturing survey at 8:30 a.m. ET. The diffusion index of business activity is expected to reach -9 in November, unchanged from the previous month.

The Fed will release the industrial production report for October at 9:15 a.m. ET. Industrial production may have declined 0.3% month-over-month following a 0.3% increase in September. Manufacturing output may also have declined by 0.3%.

New York Fed President John Williams is due to speak at 9:25 a.m. ET followed by Fed Governor Randall Kroszner at 10 a.m. ET.

The National Association of Home Builders will release its housing market index for November at 10 a.m. EDT. The index is expected to remain unchanged at 40 in November.

Fed Governor Christopher Waller is scheduled to speak at 10:30 a.m. ET.

The Treasury is due to auction four- and eight-week bills at 11:30 a.m. ET.

Cleveland Fed President Loretta Mester and Fed Governor Lisa Cook are both due to speak at 12 p.m. ET.

Stocks In Focus:

• NetEase, Inc. (NASDAQ:NTES) fell over 5% in premarket trading following the release of its quarterly results.
• Walmart slipped over 2% despite the company’s beat-and-raise quarter.
• Cisco Systems, Inc. (NASDAQ:CSCO) plunged over 11% after the networking giant slashed its full-year guidance.
• Palo Alto Networks, Inc. (NASDAQ:PANW) moved 5% lower in reaction to a billings guidance miss.
• Alibaba Group Holding Limited (NYSE:BABA), Macy’s, Inc. (NYSE:M), Shoe Carnival, Inc. (NASDAQ:SCVL), Warner Music Group Corp. (NASDAQ:WMG), Williams-Sonoma, Inc. (NYSE:WSM) and The Children’s Place, Inc. (NASDAQ:PLCE) are among the key companies announcing quarterly results ahead of the market open.
• Those reporting after the close include Applied Materials, Inc. (NASDAQ:AMAT), The Gap, Inc. (NYSE:GPS), Ross Stores, Inc. (NASDAQ:ROST), and Beazer Homes USA, Inc. (NYSE:BZH).

Crude oil futures edged down 0.09% to $76.59 in early European session on Thursday following Wednesday's 2.04% retreat.

The benchmark 10-year Treasury note fell 0.043 percentage points to 4.494% on Thursday.

Most Asian markets moved to the downside following their recent gains, and European stocks traded in the red in late-morning trading on Wednesday.

The U.S. dollar was stronger against the pound and commodity currencies in the currency market, while it slipped against the yen and the euro. Cryptocurrencies firmed up, with Bitcoin (CRYPTO: BTC) trading firmly above the $37,000 mark.

Read Next: Larry Summers Says Market Reposing ‘Too Much Confidence In Mother Fed,’ Warns 2% Inflation Target Might Not Be Met Without Significant Downturn

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