Futures struggle for direction ahead of earnings, economic data

[February 08, 2024]  (Reuters) - U.S. stock index futures see-sawed in a tight range on Thursday following a strong finish on Wall Street a day earlier ahead of big-ticket earnings reports, while investors also awaited data that could offer clues on the economy's health.

The main stock indexes ended the previous session on a strong note as investors lauded robust performance from corporate America, looking past uncertainty on the timing of rate cuts and jitters around the stability of some regional banks.

The S&P 500 notched a new record high on Wednesday bringing the benchmark index a whisker away from 5,000 points, while the Nasdaq is about 2.8% away from breaching its all-time high hit in November 2021, driven by an on-going rally in technology and tech-adjacent stocks.

On tap before the opening bell are quarterly reports from Spirit Airlines, Tapestry, Hershey, Conocophillips and Philip Morris.

More than half of the S&P 500 companies have reported quarterly results, with 81.2% surpassing profit expectations, compared with a long-term average of 67%, according to LSEG data earlier in the week.

On the economic data front, jobless claims for the week ended Feb. 3 are due at 8:30 a.m. ET where economists forecast a dip to 220,000 from 224,000 the week before.

Remarks from policymakers are also on investors' watchlist, with voting member and Richmond Fed President Thomas Barkin expected to speak later in the day.

Throughout the week, central bankers have shown little urgency to start easing policy soon or to move quickly once they do, stating that more confidence was needed on inflation heading down to 2%.

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., February 7, 2024. REUTERS/Brendan McDermid

Among premarket movers, Walt Disney advanced 6.6% after the media giant hit back at activist investors with a market-beating profit, a gaming investment and plans to launch an ESPN streaming service in 2025. The company also announced a $3 billion share repurchase plan and a 50% increase in dividend.

At 5:45 a.m. ET, Dow e-minis were down 23 points, or 0.06%, S&P 500 e-minis were down 4.75 points, or 0.09%, and Nasdaq 100 e-minis were down 7 points, or 0.04%.

Among others, New York Community Bancorp lost 4.7% a day after the lender sought to bolster investor confidence by appointing a new executive chairman and said it could cut exposure to the troubled commercial real estate segment.

Arm soared 24% after the British tech company forecast quarterly sales and profit above expectations as customers aim to design new chips for artificial intelligence work, generating higher royalties.

PayPal's forecast of flat growth in adjusted profit for the current year overshadowed its market-beating earnings report, sending shares of the payments giant down 8.6%.

(Reporting by Johann M Cherian in Bengaluru; Editing by Maju Samuel)

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