Stock futures stumble after in-line inflation print


U.S. stock futures were mixed ahead of the open Friday.

Futures tied to the S&P 500 (^GSPC) added 0.1%, while futures on the Dow Jones Industrial Average (^DJI) were lower by 0.1%. Contracts on the technology-heavy Nasdaq Composite (^IXIC) rose by roughly 0.5%.

The yield on the benchmark 10-year U.S. Treasury note rose to 3.437% from 3.397% Thursday. The dollar index added 0.1%, trading at $101.94 Friday morning.

Stocks extended a string of losses Thursday as investors dissected economic data and corporate earnings reports, clouding their views of the health of the U.S. economy.

Despite concerns about the economy, markets have been fairly resilient and moved mostly higher this year, according to the U.S. Market Intelligence team at JP Morgan. However, the team doesn’t believe a recession is currently priced in the equity markets.

“We do not agree with the argument that because a recession is consensus,” the team wrote, “the market and economic outcome have to be better.”

The S&P 500 is expected to report a year-over-year decline in earnings of 3.9% for the fourth quarter, according to data from FactSet Research. This would mark the first year-over-year decline in earnings reported by the index since 2020 if realized.

Wall Street navigated another round of data and Fedspeak on Thursday. Federal Reserve Bank of New York President John Williams said Thursday the central bank has more rate hikes ahead “to bring inflation down to our 2% goal on a sustained basis.”

Federal Reserve Vice Chair Lael Brainard and Federal Reserve Bank of Boston President Susan Collins expressed similar remarks Thursday ahead of the Fed’s next monetary policy meeting, which starts Jan. 31.

Philadelphia Fed President Patrick Harker is expected to speak at an event Friday morning, in which he could again signal his preference to shift to 25-basis-point rate hikes.

In corporate news, Netflix (NFLX) CEO Reed Hastings announced Thursday that he is stepping down. After a two-decade run, he’s leaving the streaming platform in the hands of co-CEO Ted Sarandos and COO Greg Peters after reporting a strong end of 2022.

POLAND – 2023/01/19: In this photo illustration a Netflix logo is displayed on a smartphone with stock market percentages on the background. (Photo Illustration by Omar Marques/SOPA Images/LightRocket via Getty Images)

And the era of password sharing will soon end. The streaming giant will be enforcing password-sharing rules “more broadly” toward the end of the first quarter of 2023, Netflix announced in its earnings report on Thursday. Shares jumped nearly 6% in premarket trading.

Google parent Alphabet Inc. (GOOG, GOOGL) said it’s laying off 12,000 workers, or more than 6% of its global workforce, becoming the latest tech company to trim staff after rapid expansions during the pandemic.

In the commodities market, oil prices ticked up. Futures for Brent crude, the global benchmark, rose 0.3% to $86.45 a barrel, and WTI, the US benchmark, rose 0.2% to about $80.50. Both could end the week with another gain, driven by optimism about demand rebound in China.

Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv

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