S&P 500 futures are on the rise this Friday morning, buoyed by positive earnings reports from major tech companies and the anticipation surrounding the January jobs report. Futures linked to the broader market index have increased by approximately 0.5%, while Nasdaq 100 futures have seen a robust 1% climb. Meanwhile, Dow Jones Industrial Average futures are hovering near the flatline.
In after-hours trading, Meta’s shares experienced a notable 15% surge after the social media giant outperformed analysts’ expectations. Meta, the parent company of Facebook, not only defied predictions but also announced plans to introduce a quarterly dividend for the first time and approved a substantial $50 billion share buyback program. Amazon’s stock also saw a positive uptick, rising by 7% following strong fourth-quarter results. However, Apple faced a 3% decline in its stock value after reporting a sales dip in China during the fiscal first quarter.
These market movements come on the heels of a day of recovery in Thursday’s trading session. The Dow Jones Industrial Average saw a gain of 0.97%, while the S&P 500 and Nasdaq Composite recorded increases of 1.25% and 1.3%, respectively. This positive momentum emerged after a sell-off on Wednesday triggered by Federal Reserve Chair Jerome Powell’s indication that a rate cut in March was unlikely.
Art Hogan, Chief Market Strategist at B. Riley Wealth Management, noted that Thursday’s upward movement indicated a correction of the previous day’s overreaction and reflected optimism about the potential for a rate cut. While he considered a rate cut in May a possibility, he did not view it as the base case.
Furthermore, the market responded favorably to better-than-expected earnings across various sectors. Hogan expressed confidence in the ongoing market rally for the year, citing factors such as a resilient economy, a confident consumer base, positive economic data, and the potential for earnings and revenue growth in 2024.
Investors eagerly awaited the release of January’s jobs report on Friday, with economists forecasting job growth of 185,000 positions and a slight uptick in the unemployment rate to 3.8%. This follows the robust December report, which saw the addition of 216,000 positions and an unemployment rate of 3.7%.
Before Friday’s bell, companies such as Chevron, Exxon Mobil, Bristol-Myers Squibb, Cigna, and AbbVie were scheduled to report their earnings.