Shine Trader Limited reports:
Stock futures pointed to a lower open Thursday night as investors received another batch of earnings reports and more data on the pace of the economic recovery.
Standard & Poor’s 500 index futures edged down 0.3 percent at the open overnight. In Thursday’s trading session, the blue-chip index set intraday and closing highs. Dow Jones and Nasdaq futures were also lower.
Snap shares fell more than 20 percent in late trading after a drop in third-quarter revenue, weak guidance for the current quarter, and apple’s iOS privacy update hit the social media platform’s advertising business. Intel shares fell after the company said margins would come under pressure over the next three years, in part reflecting the challenge of a global material shortage. Chipotle’s (CMG) shares fell slightly despite reporting better-than-expected third-quarter same-store sales, though the company said there were widespread employee shortages.
Despite mixed earnings reports on Thursday afternoon, the S&P 500 and The Dow remained within striking range of their all-time highs, driven largely by a string of forecasts that have seen quarterly corporate profits and economic data beat forecasts. Both moves allayed fears of a slowdown in the growth environment after a surge in renewed activity earlier this year.
New data on Thursday showed new claims for unemployment benefits improved last week to their lowest level since March 2020, falling more than expected as layoffs, layoffs, and other involuntary separations in the labor market slowed further. Sales of previously owned homes rose by the most since September 2020, suggesting that demand for homes remains strong even as inventories remain tight and prices continue to climb.
Based on quarterly results so far, many companies are showing rising profits even in the face of higher input and labor costs and supply-chain challenges.
“Let’s not forget that our margins are very high, so there is room for compression. “What we’re seeing in the early earnings reports is probably the reason why stocks are making new highs, because operating leverage within companies is so important right now,” Gibson Smith, founder of Smith Capital Investors, told Yahoo Finance Live on Thursday. Think about 18% revenue growth, or 50%, 60%, 70% revenue growth. All of that is good for corporate America and I think it will actually drive stock prices higher.”
Reprint indicated source：Spark Global Limited information