U.S. stock futures took a breather on Thursday ahead of a busy earnings day spotlighting Amazon (AMZN), as investors juggled recent performance reports and mindful watching of President Donald Trump’s swift policy changes.
Both the Dow Jones Industrial Average futures and the S&P 500 futures stayed slightly in positive territory. Meanwhile, futures for the tech-heavy Nasdaq 100 slipped 0.1% after two consecutive victorious days for the major indices.
Although the earlier tariff concerns that disrupted stocks earlier in the week have somewhat subsided, the market remains vigilant on the upcoming earnings for any red flags from companies. Particularly, there’s a keen interest in tech and chip results, as they might reveal more about the current state of AI demand.
All eyes are on Amazon’s quarterly report expected after the market closes, especially following Alphabet’s (GOOG, GOOGL) underwhelming cloud sales. Investors will gauge whether Big Tech intends to continue robust AI investments, this coming after disheartening updates from chipmakers Arm (ARM) and Qualcomm (QCOM) late Wednesday.
In other news, Ford (F) shares took a hit even after surpassing quarterly earnings estimates, primarily due to subdued full-year guidance citing tariffs as a looming threat. Ford’s CEO has warned that persistent 25% tariffs on Mexico and Canada could drastically erode profits by billions within the auto industry.
Additionally, companies like Eli Lilly (LLY), Peloton (PTON), and ConocoPhillips (COP) also had their earnings reports lined up for the day.
In parallel developments, investors are interpreting Treasury Secretary Scott Bessent’s midweek comments saying Trump wants to focus on reducing Treasury yields to alleviate borrowing costs, rather than pushing the Federal Reserve to lower rates. The benchmark 10-year yield was trading at around its lowest mark since December, about 4.43%.
However, Trump’s policies still present a puzzle for the Fed, as his tariffs could heighten inflation, though policymakers are adopting a “wait and see” stance before making any moves. Meanwhile, an update on jobless claims is expected later, offering insights into the labor market, which is critical for the Fed’s decision-making and might be vulnerable to an inflation uptick.
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Let’s take a look at the day ahead.
Today’s economic data includes Challenger job cuts (year-over-year, January) and initial jobless claims for the week ending February 1st. Several significant earnings reports are on the docket, including those from Amazon (AMZN), Eli Lilly (LLY), Affirm (AFRM), e.l.f. Beauty (ELF), Bristol Myers Squibb (BMY), ConocoPhillips (COP), Hershey (HSY), Peloton (PTON), Pinterest (PINS), Phillip Morris International (PM), Roblox (RBLX), Tapestry (TPR), and Yum! Brands (YUM).
Here are some major stories you might have missed overnight and earlier today:
– The Elon Musk-Sam Altman feud is escalating into a lengthy legal battle.
– Honeywell is planning to split into three separate companies, according to a Wall Street Journal report.
– Trump and Musk appear to be preparing for a confrontation over a law dating back to the Watergate era.
– The most significant threat to the stable labor market currently is…
– 40,000 federal employees are opting into a ‘buyout’ from Musk as the deadline approaches.
– Treasury Secretary Bessent noted, Trump prefers lower 10-year yields rather than Fed rate cuts.
– Arm’s stock fell after the chip company revised its annual sales forecast downwards.
Meanwhile, in another sector entirely, oil prices are rebounding after a sharp downturn. This comes as Saudi Arabia’s state oil company announced a significant increase in March oil prices. This development caused a swift response in the futures market, with Brent crude futures rising by 14 cents to $74.75 per barrel, and West Texas Intermediate crude futures up by 18 cents to $71.21 per barrel. Reports from Reuters provide further insights on this shift.
