Inventory futures open increased as S&P 500 seems to be to increase win streak

A woman carries an umbrella as she walks past the New York Stock Exchange (NYSE) in New York City on February 9, 2017.

Drew Angerer | Getty Images

At the start of the overnight session on Wednesday evening, futures contracts linked to major US stock indices rose, suggesting an extension of the S&P 500’s three-day winning streak on Thursday.

The Dow futures rose 66 around 6 p.m. in New York, while the S&P 500 contracts rose a similar 0.3%. The Nasdaq 100 futures were up 0.4%.

The moves in extended trading came after a relatively calm day on Wall Street, with the S&P 500 rising 0.1% for a third straight day.

The Dow Jones Industrial Average was up 36 points while the Nasdaq Composite was down less than 0.1% on Amazon stocks falling less than 0.1% during the regular session.

Investors watched a handful of stocks, including eBay, PayPal, and Qualcomm, in expanded trading after each posting a quarterly earnings report.

Of the three, eBay slightly outperformed, with the after-hours market up more than 9% after outperforming both profit and profit margins and giving a rosier-than-expected forecast for the first quarter.

PayPal gained nearly 3% while Qualcomm fell more than 7% after revenue for the first quarter of the fiscal year was below consensus estimates.

The macro outlook remained in focus as traders prepared for the final iteration of the Department of Labor’s unemployment claims report due at 8:30 a.m. ET on Thursday. Economists polled by Dow Jones expect 830,000 claims for the first time in the week ending January 30th.

If claims were received as expected, it would be a slight reduction from the 847,000 original claims the previous week.

Economic recovery and market performance have been tracking the severity of Covid-19 in the United States. Some strategists said the introduction of vaccines could lead to higher interest rates, if not outperformance in cyclical stocks or bank stocks.

“Sentiment about Covid vaccines is still very low. This will improve as investors understand that vaccines produce either 1) immunity or 2) mild reactions (low severity),” wrote Dennis DeBusschere, ISI strategist at Evercore , on Wednesday in an email.

“As investors and society at large recognize that low severity is really important, sentiment about vaccines will improve and [Treasury] Returns will have one more gap, “he added.

The yield on the 10-year US Treasury bill rose 3 basis points to 1.14% on Wednesday.

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