Stock futures rebound, Apple gains after record sales quarter

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Stock futures opened higher on Thursday evening as investors took in the earnings results of some big tech companies at the end of another volatile week.

S&P 500 contracts won. Dow futures also advanced, as Apple Components (AAPL) stock surged in late trading after the iPhone maker reported record quarterly sales and better-than-expected earnings despite supply chain challenges. Meanwhile, shares of Robinhood (HOOD) fell after the trading platform missed quarterly revenue, posted a bigger-than-expected quarterly decline in user numbers and offered disappointing guidance.

The S&P 500 was on track to post a weekly loss of around 1.3%, based on Thursday’s closing prices. New reports showing a better-than-expected rise in US GDP in the fourth quarter and an improvement in weekly jobless claims did little to lift stocks during Thursday’s session. The Dow Jones and Nasdaq also fell over the past week, with volatility rising as traders considered the implications of the Federal Reserve’s more hawkish monetary policy tilt for markets.

“Markets digested this hawkish pivot from the Fed which I think surprised people with its magnitude,” said Scott Crowe, chief investment strategist at CenterSquare Investment Management, Yahoo Finance Live said Thursday. “Not too long ago they described inflation as ‘transitional’, but now they are firmly aiming to moderate inflation. And I think that has given the market a lot of indigestion as it begins to digest this rather spectacular change.

Federal Reserve Chairman Jerome Powell strongly signaled earlier this week that a March liftoff in interest rates above their current near-zero levels was in the cards. However, other questions remained, namely how quickly the Fed will raise interest rates, and when and how quickly the Fed will start shrinking its balance sheet by nearly $9 trillion and tightening financial conditions.

“Everything the Fed is doing at this point, we think, has just been priced in over the last few weeks. And that’s where a lot of the market decline is coming from,” said Kathy Entwistle, managing director. of Morgan Stanley, at Yahoo Finance Live on Thursday. . “And the big question is, are we going to slide a little more? What’s going on?”

“We’re looking at companies and their earnings … to determine whether or not we’re going to have a bit more market pull or not,” she added. “And it depends on what they can do in the future, where their opportunities are. And we’ve heard a lot about inflation. If you think about 7% inflation, that’s pretty big .”

“In the fall, it was the retail investor who held the market,” Entwistle said. “And now their feelings have kind of changed and they’re not optimistic about the current situation anymore. So I think we have to think about all those things. We think the quality, again, is going to do better than the growth.”

6:15 p.m. ET Thursday: Stock futures jump after Apple earnings

Here’s where futures started trading on Thursday night:

  • S&P 500 Futures Contracts (ES=F): +30 points (+0.69%), to 4,347.75

  • Dow futures (JM=F): +169 points (+0.5%), to 34,212.00

  • Nasdaq futures contracts (NQ=F): +169 points (+1.21%) to 14,155.75

Photo By: NDZ/STAR MAX/IPx 2022 01/24/22 People walk past the New York Stock Exchange (NYSE) on Wall Street on January 24, 2022 in New York City.

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter

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