Traders work on the floor of the New York Stock Exchange (NYSE) as a picture of Vice President Kamala Harris is displayed on a television screen on July 22, 2024 in New York City.
Spencer Platt | Getty Images
Stock futures rose modestly on Thursday evening as the major averages head for weekly losses and investors anticipated a reading of the Federal Reserve’s preferred inflation gauge.
Futures tied to the Dow Jones Industrial Average advanced 42 points, or just over 0.1%. S&P 500 futures and Nasdaq 100 futures climbed about 0.1% each.
In after-hours trading, medical device maker Dexcom plunged 39% after releasing disappointing fiscal full-year guidance. Footwear company Deckers reported fiscal first-quarter earnings and revenue that exceeded analysts’ expectations, boosting shares by roughly 9.8%.
Stocks are poised to end the week with declines, as investors on Thursday added to the previous session’s steep losses by dumping some megacap tech and artificial intelligence-tied stocks. The activity seemed to be part of a broader rotation into small caps and more cyclical areas of the market.
The S&P 500 and tech-heavy Nasdaq Composite slid by about 0.5% and 0.9%, respectively, on Thursday. The 30-stock Dow bucked the trend and added roughly 81 points, or just 0.2%.
“Volatility came back with a vengeance this week as selling pressure in the megacap space dragged down the broader market,” LPL Financial chief technical strategist Adam Turnquist said in a note to clients, adding that overbought conditions have also contributed to the recent weakness. “Counterbalancing weakness in these heavyweight names poses a challenge for the rest of the market.”
The broad-market index is down 1.9% this week, while the Nasdaq has lost nearly 3.1%. The Dow is down roughly 0.9% week to date.
On Friday at 8:30 a.m. ET, traders will watch for the June reading of the personal consumption expenditures report, an inflation reading that’s preferred by central bank policymakers. On a monthly basis, headline PCE is expected to have grown by 0.1% and by 2.5% from 12 months earlier, according to economists polled by Dow Jones. The final Michigan sentiment survey will be released at 10 a.m.
On the earnings front, Bristol Myers Squibb, Colgate-Palmolive and 3M are slated to post quarterly results.
