Stock futures were muted in early trading Thursday after better-than-expected earnings and consumer confidence data helped lift stocks for a second day.
Stock futures tied to the Dow Jones Industrial Averages fell 25 points, or 0.07%, while futures for the S&P 500 and Nasdaq 100 were slightly lower.
Shares of Micron Technology fell 2% in overnight trading on disappointing quarterly results. Shares of Under Armor swung between gains and losses after the athletic apparel maker tapped Marriott executive Stephanie Linnartz as its next CEO.
The overnight moves followed another positive session for stocks. In regular trading on Wednesday, the Dow gained 526.74 points, while the S&P 500 and Nasdaq Composite rose 1.49% and 1.54%, respectively.
All 11 S&P 500 sectors ended the day with gains, led by energy. Shares of Nike and FedEx rose on quarterly results, giving some investors hope that earnings will be decent despite worries of a slump. Strong consumer sentiment data in December also boosted markets.
While better earnings results likely factored into Wednesday’s upbeat market sentiment, oversold conditions may have contributed to the rally, according to Liz Ann Sonders, chief investment strategist at Charles Schwab.
“I think there were a couple of earnings reports that came in slightly better than expected,” he said. “But I also think the market has been in another correction phase and, on some technical measures, it’s been a bit oversold. Buyers stepped in. Day-to-day movements are hard to detect directly.”
Even with Wednesday’s gains, stocks are poised to end the month in losses. The Dow is down 3.51%, while the S&P 500 and Nasdaq are down 4.94% and 6.62%, respectively. All three major averages are set to snap a 3-year winning streak and post their worst annual performance since 2008.
On Thursday, investors await Carmax earnings results and jobless claims data.