U.S. stock-index futures pointed to a slightly lower open on Thursday, putting the main gauges on track for a second-straight day of muted action as investors continued to digest the latest reads on the corporate earnings season.
While the results have largely come in ahead of expectations thus far this reporting season, political uncertainties remain in the background of trading.
What are the main benchmarks doing?
Dow Jones Industrial Average futures YMM8, -0.47% fell 49 points, or 0.2%, to 24,682, while S&P 500 futures ESM8, -0.50% shed 8 points to 2,702, a decline of 0.3%. Nasdaq-100 futures NQM8, -0.62% shed 23.50 point to 6,820, down 0.3% on the day.
On Wednesday, the Dow DJIA, -0.37% closed slightly lower, hurt by a selloff for IBM IBM, -0.15% after the tech giant’s latest results, while the S&P 500 SPX, -0.49% and the Nasdaq Composite COMP, -0.54% edged up.
The three gauges are showing year-to-date gains ranging from 0.1% to 5.7%, having recovered this month from their slump in March.
What’s driving markets?
First-quarter earnings reports have grabbed investors’ attention this week, with Netflix Inc. NFLX, -1.49% Goldman Sachs Group Inc. GS, +0.78% and UnitedHealth Group Inc. UNH, -0.60% among the companies that have posted encouraging results.
See: Goldman was king of the quarter, but Morgan is the one to buy, analysts say
The S&P 500 components are expected to see earnings growth of 17.3% for the period, the fastest rate of expansion since 2011. The results have been enough to largely overshadow such uncertainties as trade policy questions and tensions over Syria.
What are strategists saying?
“With a lack of geopolitical drivers, markets have entered a somewhat quietened period of trading,” said Richard Perry, a Hantec Markets analyst, in a note.
“There is increased focus on corporate earnings, which have so far been positive on the whole in the U.S.”
Which stocks are in focus?
Shares in Amazon.com Inc. AMZN, +1.83% rose 2% in premarket action after CEO Jeff Bezos disclosed in an annual letter to shareholders that the e-commerce juggernaut’s Amazon Prime subscription program has topped 100 million members world-wide.
Read: Amazon has ‘iron grip’ on e-commerce—analysts react to its big Prime number
And see: Bezos wants Amazon workers to start meetings reading memos ‘with the clarity of angels singing’
Chip stocks lost ground premarket, with the VanEck Vectors Semiconductor ETF SMH, -2.40% down 1%, in the wake of reports late Wednesday that Facebook Inc. FB, -0.23% plans to design chips. The effort is part of the social-media company’s nascent push to develop more of its own hardware. Facebook shares were little changed ahead of the open.
Procter & Gamble Co.’s stock PG, -3.98% tacked on 1% premarket after the seller of Gillette razors and Crest toothpaste agreed to acquire a consumer-health business from Germany’s Merck KGaA MRK, +0.17% in a $4.2 billion deal that adds vitamins and food supplements to P&G’s lineup of over-the-counter medicines. P&G also posted quarterly results that beat forecasts.
Bank of New York Mellon Corp. BK, +4.04% reported first-quarter earnings and revenue that topped expectations.
Shares in credit-card companyAmerican Express Co. AXP, +5.32% and aluminum producerAlcoa Corp. AA, +4.44% look set for gains of 3% or more after they both posted better-than-expected earnings late Wednesday.
Shares in tobacco giant Philip Morris International Inc. PM, -11.87% fell 4% after the company posted weaker-than-expected revenue, along with a stronger-than-anticipated adjusted profit.
Blackstone Group LP BX, +2.06% reported first-quarter earnings that topped expectations.
Aceto Corp. ACET, -62.57% dropped 50% in premarket action after the developer of health products and pharmaceutical ingredients maker said it was negotiating credit agreement waivers with its lenders, cutting its dividend, taking a large impairment charge and initiating an evaluation of strategic alternatives.
Roku Inc. ROKU, +1.80% rose 2.4% before the bell, after an analyst from Needham played down the potential impact of a deal that would see Amazon.com Inc. sell some products at Best Buy Co Inc. BBY, -1.60%
Which economic reports are on tap?
Initial jobless claims declined 1,000 to 232,000 in the latest week. While analyst had expected a somewhat steeper decline, claims remain near a 45-year low.
The Philadelphia Federal Reserve’s business-conditions index came in at 23.2 in April.
Check out: MarketWatch’s Economic Calendar
At 10 a.m. Eastern, a March report on leading indicators is scheduled to arrive.
Federal Reserve Board Governor Lael Brainard said there are “some signs of financial imbalances in the economy,” citing asset valuations and business leverage.
After the market open, Randal Quarles, the Fed’s vice chairman for financial supervision, is due to testify about regulatory reform before a Senate committee at 10 a.m. Eastern.
At 6:45 p.m. Eastern, Cleveland Fed President Loretta Mester should give a speech on the economic outlook and policy at the University of Pittsburgh’s business school.
What are other markets doing?
European stocks SXXP, -0.05% traded mixed, after Asian markets closed with gains. Oil futures CLK8, +0.66% advanced, as gold futures GCM8, -0.19% lost ground. The ICE U.S. Dollar Index DXY, -0.04% was roughly flat.