U.S. stock futures slipped on Thursday night after the major averages suffered declines amid concerns of stubbornly high inflation metrics.
Dow Jones Industrial Average futures fell by 67 points, or 0.2%. S&P 500 and Nasdaq 100 futures dipped by 0.3% and 0.4%, respectively.
During regular trading, theDow shed 431.20 points, or 1.26%. The S&P 500 slid 1.38%, and the tech-heavy Nasdaq Composite dipped 1.78%.
These losses came after January’s producer price index, an inflation metric that tracks wholesale prices, rose 0.7% according to Thursday’s report. Economists surveyed by Dow Jones had anticipated a 0.4% increase. The Labor Department also reported an unexpected fall in initial jobless claims for the week ending Feb. 11.
The selloff intensified late in the day following comments from St. Louis Federal Reserve President James Bullard said he backed a 50 basis point interest rate hike at the central bank’s previous meeting and that he would not rule out a rate increase of that magnitude at the March meeting.
Fed commentary aside, consumers have been a key focal point for investors this week, particularly in light of the latest round of inflation and retail sales data.
“I think the equity market is listening to data about the consumer that’s concurrent — that there’s retail spending that bounced back, that consumer confidence bounced back, and that services PMI bounced out of contraction. There are things to be happy about — the labor market is still tight,” SoFi’s head of investment strategy Liz Young said on CNBC’s “Closing Bell: Overtime.”
“But what I think the equity market is not pricing in at this point, or is not worried enough about, is that the consumer spending at some point. Savings run dry, and wage growth is falling, and it can’t support that level of spending going forward. Debt is piling up,” added Young.
The major indexes are mixed ahead of the final trading session of the week. The Dow is down 0.51% for the week. The 30-stock index is on pace for its third negative week in a row -- a first since its three-week losing streak ended in September. The Nasdaq is up 1.18% for the week, on track for its sixth week of gains in seven. Meanwhile, the S&P 500 is flat.
Investors will watch Fed officials for more hints on the central bank’s rate-hiking campaign. Richmond Fed President Tom Barkin will be speaking about the labor market on Friday morning. Fed Governor Michelle Bowman is also taking part in a discussion at the Tennessee Bankers Association’s credit conference.
38 MIN AGO
JPMorgan strategist says market is seeing the ‘overheat before the retreat’
A lot of the market selloff might be in, but optimism is still running too high, according to JPMorgan Asset Management global market strategist Meera Pandit told CNBC on Thursday.
“This is probably the overheat before the retreat in the economy,” Pandit said on CNBC’s “Closing Bell” on Thursday.
Pandit said the market right now is rallying off of strong economic data, overshoot on jobs, the latest consumer price index report and producer price index data, retail sales and industrial production. The strategist warned that consumer spending might weaken in the next several months, noting that stimulus checks and saving rates are waning.
“We’re either going to see slower growth and a slowdown and disinflation, or, if growth is resilient, that means that inflation might have a little bit more room to run and therefore the Fed has to hike,” Pandit said. “Either way, that’s a little bit pessimistic for risk assets.”
Pandit said the firm is seeing an environment of downward revisions in the U.S., noting that valuations of U.S. stocks are comparatively expensive to international stocks, which she said are trading at a 30% discount.
– Pia Singh
52 MIN AGO
Dow heads for a losing week, but Nasdaq remains in positive territory
Stocks are mixed on a weekly basis following Thursday’s action.
The Dow Jones Industrial Average is the laggard of the three, posting a 0.51% loss for the week. The 30-stock index is on track for its third consecutive week of losses, a first since its three-week losing streak ended in September.
The Nasdaq Composite is the outperformer, with a 1.18% gain. The tech-heavy index is on track for its sixth positive week in seven.
Finally, the S&P 500 is flat for the week.
-Darla Mercado, Chris Hayes
1 HOUR AGO
Stocks making the biggest moves in extended trading
Here are three stocks making headlines after the bell.
DoorDash — The online food delivery platform’s shares jumped 7% after it reported a revenue beat and upbeat guidance. The company’s fourth-quarter revenue came in at $1.82 billion, topping the $1.77 billion estimated by analysts polled by Refinitiv. Reported losses, however, were greater than analysts’ projections, coming in at a per-share loss of $1.65 versus analysts’ estimates of 68 cents.
Texas Roadhouse — The restaurant chain’s shares dropped about 5%, coming down from a 52-week high during Thursday’s trading session. Texas Roadhouse’s fourth-quarter earnings and revenue fell below expectations. The restaurant posted 89 cents earnings per share versus the $1.03 estimated by analysts polled by Refinitiv. Revenue came in at $1.01 billion, missing analysts’ estimates of $1.02 billion. The company blamed commodity inflation and higher wages for the shortfall.
Moderna — Shares for the biotech company fell 6.7% after its influenza vaccine candidate posted mixed results in clinical trials.
Check out more after hours movers here.
— Hakyung Kim
1 HOUR AGO
Stock futures open lower
U.S. stock futures fell on Thursday night.
Dow Jones Industrial Average futures fell by 50 points, or 0.1%. S&P 500 and Nasdaq 100 futures dipped by 0.3% and 0.4%, respectively.
— Hakyung Kim