Stock Futures Dip as Wall Street Eyes Record Highs Amid Earnings Season

NEW YORK (AP) — U.S. stock futures edged lower early Thursday as investors weighed the potential for new record highs following a strong earnings season and resilient economic data. Futures for the S&P 500 slipped 0.2%, while Dow Jones Industrial Average futures gained 30 points, or 0.1%. Nasdaq 100 futures fell 0.6%.

The cautious trading came a day after the S&P 500 set an intraday record high on Wednesday, closing with a 0.61% gain. The Dow and Nasdaq also rose, finishing up 1.28% and 0.30%, respectively, as both indexes hovered near their own record levels.

Market optimism has been fueled by expectations of potential tax cuts and deregulation under President Donald Trump, alongside signs of steady economic growth. The fourth-quarter earnings season has also started strong, with several companies reporting better-than-expected results.

“Forward earnings estimates continue to make new highs. There’s been a lot of discussion about the elections, post-elections, and the Fed, and whether the economy is growing too fast or too slow. One thing that’s been remarkably resilient is forward earnings estimates, and we’re off to a good start as well,” said Keith Lerner, co-CIO and chief market strategist at Truist, during a Wednesday interview.

Investors awaited key economic data Thursday, including initial jobless claims and the Kansas City Fed manufacturing index, for further insights into the economy’s health.

In after-hours trading Wednesday, several companies saw notable stock movements following earnings reports. Knight-Swift Transportation shares jumped more than 5% after reporting improved operating margins and adjusted earnings of 36 cents per share, beating analysts’ expectations. Alaska Air Group rose 3% after posting a net income of $71 million for the quarter, a significant turnaround from a loss a year earlier.

However, not all earnings news was positive. Electronic Arts shares tumbled more than 10% after the video game publisher lowered its guidance for the quarter and full fiscal year, citing weakness in its Global Football franchise.

As of 6 p.m. Wednesday, stock futures remained largely unchanged, with Nasdaq 100 futures down 0.1% and S&P 500 and Dow futures near flatline levels.