U.S. stock futures were mixed in Thursday morning trade after the Federal Reserve signaled no imminent plans for dialing back asset purchases.
Dow Jones Industrial Average futures gained 142 points. Meanwhile, S&P 500 futures hovered above the flatline and Nasdaq 100 futures traded in mildly negative territory.
PayPal and Facebook fell 5% and 3% in premarket trading, respectively, after warning of significant growth slowdown as they reported quarterly earnings.
Meanwhile, shares of Ford jumped nearly 4% after it raised its 2021 outlook, saying it’s selling more cars that are more expensive, though it missed analysts’ estimates on earnings.
The moves in futures came after Fed Chairman Jerome Powell cautioned that although the economy is making progress toward its goals, it has a ways to go before the central bank would actually adjust its easy policies.
“We have some ground to cover on the labor market side,” Powell said. “I think we’re some way away from having had substantial further progress toward the maximum employment goal. I would want to see some strong job numbers.”
The major averages are on track to end the month higher, with the S&P up 2.4% for July. The Nasdaq Composite and Dow are up 1.8% and 1.2%, respectively.
Amazon, Pinterest and Anheuser-Busch are set to report earnings Thursday. Traders will also watch out for the latest readings on initial jobless claims and pending home sales.
“The market is understanding we are having a blowout quarter here compared to a year ago,” said Michael Reynolds, vice president of investment strategy at Glenmede. “What’s much more important this season is the guidance we’re getting on quarters ahead, as the economy settles out into what might be the new normal.”
Meanwhile, the Senate voted Wednesday to advance a bipartisan infrastructure plan, which would put $550 billion into transportation, broadband and utilities.
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