U.S. Futures Dip After Two Days of Records, Asia Is Mixed

The Dow and S&P may have squeaked into records Wednesda,y but Thursday futures indicate a day of contemplation.
By Andrew Bulkeley ,

U.S. stock futures were negative across the board Wednesday evening as traders paused till earnings season moves into high gear on Thursday. Asia proved no help either: traders in Japan awaited signals about how the government there will solidify its stimulus ideas.

Futures for the S&P 500 were off 0.06%, the Dow Jones Industrial Average, 0.02% and the Nasdaq, 0.03% at 10:22 p.m. EDT.

The negative futures follow a tepid day on Wall Street that was still good for fresh closing highs for both the S&P and the Dow. Having shrugged off the U.K.'s Brexit woes, U.S. investors are now looking toward corporate earnings to guide the way as a raft of financial companies are expected to report in the final two trading days of the week.

The S&P closed up 0.01% to an all-time high of 2,152.43 while the Dow added 0.13% to its new record of 18,372.12. Meanwhile, the Nasdaq closed 0.34% lower as investors there appeared ready to reconsider after five days in the green -- the index remains below its last record, set in July 2015.

The gains on the Dow and S&P were tempered by energy companies, which suffered as oil pulled back 4.4% in the U.S. trading session after showing signs of strength earlier in the week.

Oil recovered in early Asian trading, with industry standard Brent crude nearly 1% higher at $45.22, despite highs Tuesday above $48 per barrel for September delivery. West Texas crude for August delivery gained 1.05% to $45.22 per barrel. Both prices were current as of 10:28 p.m. EDT.

Asian markets opened mixed with the Nikkei up 0.88% as investors there bet economic stimulus promised by Prime Minister Shinzo Abe, who was re-elected Sunday, would pay off. Traders in Hong Kong, where the Hang Seng was 0.32% lower, were more pessimistic.

Europe had equally mixed emotions Wednesday as investors focused on indicators and earnings rather than the appointment of Theresa May as the U.K.'s new prime minister. Eurozone industrial output fell a larger-than-expected 1.2% in May, but a number of large-cap and high-profile companies provided upbeat earnings reports.

The FTSE 100 closed down 0.15% to 6,670.40. In Frankfurt, the Dax fell 0.3% to 9,930.71 and, in Paris, the Cac 40 ended up 0.09% to 4,335.26. The Euro Stoxx 50 rose 0.02% to 2,934.13.

The pound gained 0.26% in Asian trading to $1.3171, still below levels from earlier in the week when exuberance over a stabilizing U.K. government outweighed fears of a U.K. future without Brussels. With Britain's Mayand her cabinet in place, traders again contemplated the U.K.'s economic future.

In extended trading, shares of Taco Bell parent Yum! Brands (YUM) - Get Report gained 4.56% to 89.65 after it beat analyst expectations with an after-hours earnings release. The company said first-quarter profit, excluding one-time items, rose 9% from the prior year to 75 cents a share versus Wall Street estimates for 74 cents. Total sales fell 3% year over year to $3.01 billion, missing analyst forecasts of $3.09 billion.

However, the company hiked its full-year operating profit growth forecast to at least 14% from 12%, citing improved trends in China.

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