Stock futures are close to stabilizing after Wednesday’s rally

Stock futures were mixed on Thursday as investors continued to react to Wednesday’s comments from Federal Reserve Chairman Jerome Powell and picked through a mixed batch of earnings reports.

Futures related to the Dow Jones Industrial Average traded 8 points lower or near flat. Nasdaq-100 and S&P-500 futures rose 0.1% each.

Salesforce stock down 7% In pre-market trading on the news That co-CEO Brett Taylor is stepping down. Snowflake receded about 6% On light guidance for product revenue.

On the other hand, Okta stock rose nearly 16% after the identity-management software company issued an optimistic full-year financial forecast. Five below and Kruger It gained about 9% and 3%, respectively, after reports showed companies beat expectations in recent quarters.

The moves followed a sharp rally on Wednesday, with the Nasdaq Composite and S&P snapping three-day losing streaks after Powell appeared to Confirmation of a slowdown in central bank tightening – a question that remained in recent weeks. The Dow jumped 737.24 points, or 2.2%, on Wednesday, while the heavy Nasdaq Composite and S&P 500 rose 4.4% and 3.1%, respectively.

“Whether it was intentional or not, Powell sent the message that given the tightening that has already taken place, he is now more focused on the growth outlook and the employment picture than on getting inflation down to 2%,” Chris Senick said. Chief Investment Strategist at Wolfe Research.

Also marked on Wednesday The end of the winning month for the major averages. The Nasdaq rose 4.37% — for the second consecutive positive month for the first time in a three-month streak ending in December 2021. The S&P 500 and Dow rose 5.38% and 5.67%, respectively, to end their second month of gains for the first time since August 2021.

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Investors’ focus on Thursday shifts to Initial Jobless Claims ahead of the expected November jobs report due on Friday. The payroll report is expected to provide more clarity on the labor market, and whether it will remain quiet. Economists surveyed by Dow Jones estimate that the economy added 200,000 jobs in November, down from 261,000 jobs in October. They also expect the unemployment rate to stabilize from the previous month at 3.7%.

Personal income and personal consumption expenditure data are also expected before the bell.

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