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At
5:06 a.m. ET, Dow e-minis were up 108 points, or 0.27%, S&P 500
e-minis were up 4.5 points, or 0.08%, and Nasdaq 100 e-minis
were up 6.25 points, or 0.03%.
Lackluster earnings from Alphabet and Tesla soured investor
sentiment towards megacaps on Wednesday, knocking down the
high-momentum 'Magnificent Seven' group of tech stocks. All
three major Wall Street indexes slid between 1.2% and 3.6% on
the day to end at multi-week lows.
The trend in the megacaps was largely mixed in Thursday's
premarket trading. Apple, Nvidia, Tesla and Alphabet were down
0.5%-0.9%, while Amazon.com and Meta Platforms rose over 0.1%
each.
The heavyweight stocks have powered the stock market to all-time
highs this year and Wednesday's selloff, following the first
round of quarterly tech earnings, highlighted concerns that
these stocks might be over-stretched and in for more turbulence.
Futures tracking the Russell 2000 climbed 0.3% after the
small-cap index slumped over 2% in Wednesday's broad-based
market decline, even as investors now see more value in shifting
to lagging sectors.
With the rest of the highly monitored tech stocks not reporting
until next week, the focus now shifts to a slew of economic data
during the day -- durable goods, second-quarter GDP and weekly
jobless claims.
The personal consumption expenditures (PCE) price index data,
due on Friday, will be a crucial test for ongoing bets of an
early start to Federal Reserve rate cuts after the recent trend
of easing inflation and some weakness in the labor market.
Market participants are also pricing in around three rate cuts
this year. Bets of a 25-basis-points cut in September fell to
78.5% from 90% the previous day, as per CME's FedWatch Tool.
Among individual stocks, Ford slumped 13% after its
second-quarter adjusted profit missed estimates by a wide margin
as the automaker continues to battle costly quality issues and
an EV business that is weighing on its bottom line.
IBM climbed 4.1% after beating second-quarter revenue estimates
and raising its annual growth forecast for its software
business.
KLA rose 3% after forecasting revenue and profit for its fiscal
first quarter above expectations, while Edwards Lifesciences
slumped 22% after missing second-quarter revenue estimates.
Chipotle Mexican Grill rose 4% after surpassing estimates for
quarterly results.
(Reporting by Ankika Biswas in Bengaluru; Editing by Savio
D'Souza)
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