U.S. stock index futures gained slightly early Thursday after the Dow closed at a record in the prior session.
Futures contracts tied to the Dow Jones Industrial Average added 55 points. S&P 500 futures rose 0.2%. Nasdaq-100 futures gained 0.3% as tech shares looked set to rebound from a series of losses.
PayPal shares jumped 4% in premarket trading to lead tech names after the company posted better-than-expected earnings and said revenue last quarter surged 31%.
Tech stocks in general looked set to rebound after the Nasdaq Composite posted its fourth straight negative session on Wednesday for its longest daily losing streak since October. The tech-heavy index and S&P 500 are each lower for the week. The Dow is on track to break a two-week losing streak.
Netflix, Amazon and Facebook were among the tech names that declined on Wednesday, each falling more than 1%. Those shares were rebounding slightly in premarket trading Thursday.
Apple and Tesla shares were also higher in early trading.
However, Etsy tanked by 11% in early trading after warning that sales will slow as the pandemic boost wanes.
Shares of Gap, which have been popping in the past month along with other specialty retail as investors bet on a return to more in-person shopping, was higher again, up about 2% in early trading.
During Wednesday’s session, the Dow gained 97 points to end at a new closing high. The 30-stock benchmark index also set a new intraday record after rising nearly 200 points at one point.
It’s too early to say whether the early gains Thursday will mark a reversal in trend.
“Technology sector earnings momentum relative to the broader market peaked in late May of 2020,” said Keith Lerner, chief market strategist at Truist. “Given that we expect the economy to grow well above trend this year and next, value stands to benefit. Indeed, when looking at the value indices, they are dominated by financials and tend to have greater exposure to economically-sensitive sectors that are more leveraged to an economic recovery.”
The Russell 1000 Value index has gained 16% this year, while the Russell 1000 Growth index has advanced 5%.
On the data front, initial jobless claims will be released on Thursday. Economists surveyed by Dow Jones are expecting a print of 527,000. The data comes one day before April’s jobs report is released on Friday.
“Job growth has been strong and increasing for the past three months. April’s employment numbers are expected to show another significant gain, as layoffs were down by one-sixth during the month,” noted Brad McMillan, chief investment officer for Commonwealth Financial Network.
However, he added that concerns still remain in the market. For one, federal stimulus packages have boosted growth, and at some point, the economy will have to return to organic growth.
The busiest week of earnings is now in the rearview mirror, but a number of companies have yet to provide their quarterly updates.
Anheuser-Busch InBev, Regeneron, ViacomCBS and Kellogg are among the names on deck prior to the opening bell. Dropbox, Expedia, Roku, Beyond Meat, Shake Shack and Square will report after the market closes.
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