Stock futures were muted in early trading on Thursday, as traders digested a sharp rally from the previous session.
Stock futures tied to the Dow Jones Industrial Averages fell 79 points or 0.23%. S&P 500 futures declined 0.25%, and Nasdaq 100 futures were 0.34% lower.
CarMax shares dropped more than 12% in the premarket after the used car retailer missed profit and revenue expectations. Micron Technology shares slipped 3% in the premarket on disappointing quarterly results. Under Armor shares shifted between gains and losses after the athletics apparel maker selected Marriott executive Stephanie Linnartz as its next CEO.
The moves followed another positive session for stocks. On Wednesday, the Dow gained 526.74 points, while the S&P 500 and Nasdaq Composite surged 1.49% and 1.54%, respectively.
All 11 S&P 500 sectors finished the day with gains, led to the upside by energy. Nike and FedEx shares rose on quarterly results, giving some investors hope that earnings are faring decently despite concerns of a downturn. Strong consumer sentiment data for December also gave markets a lift.
While better earnings results likely factored into the upbeat market sentiment Wednesday, oversold conditions may have contributed to the rally, according to Liz Ann Sonders, Charles Schwab’s chief investment strategist.
“I think there were a couple of earnings reports that came out that were marginally better than expected,” she said. “But I also think that the market has been in another corrective phase, and, on some technical measures, got a bit oversold. Buyers stepped in. The wiggles on a day-to-day basis are hard to put a direct finger on. “
Even with Wednesday’s gains, stocks are on pace to finish the month with losses. The Dow is down 3.51%, while the S&P 500 and Nasdaq have tumbled 4.94% and 6.62%, respectively. All three major averages are slated to break a 3-year winning streak and post their worst annual performance since 2008.
On Thursday, investors awaited jobless claims data.
