The move in futures comes after a sell off in Wednesday’s session that extended Wall Street’s streak of losses. The Dow Jones lost 934 points, or 3.4%, for its fourth consecutive negative day and its worst loss since June 11. The S&P 500 also had its worst day since June 11, down 3.5% for its third consecutive negative session.
The highly technical Nasdaq Composite suffered a slightly larger loss at 3.7% after rising slightly in the previous session, marking its worst performance since September 8.
Mark Luschini, chief investment officer at Janney Capital Management, said he believed the pullback would prove to be a buying opportunity as some of the stocks that would benefit from an economic recovery – such as financials, materials and small caps – suffered smaller losses. than the wider market.
“This does not indicate that investors are showing growth here nationally or globally,” he said.
Still, Luschini said a key level he was watching on the S&P 500 was the 200-day moving average at around 3,130 days, around 4.3% below the index close on Wednesday.
Testing that level “would help define this as a natural setback that is likely to occur, whether it was catalyzed by the election, the coronavirus, or the Sino-U.S. Trade talks or whatever, and would in my mind be nothing further back in the context of a secular gathering, or if it’s something that takes on more of a nefarious characteristic, ”Luschini said.
The market decline also came as investors brace for a massive corporate earnings day on Thursday. Moderna, Yum Brands and Comcast, the parent company of NBCUniversal and CNBC, are expected to show up before the bell.
The afternoon will feature quarterly results for several of the world’s biggest tech companies, including Amazon, Apple, Facebook and Google-parent Alphabet. Together, these companies have a market capitalization of over $ 5 trillion.
Bob Doll, chief equities strategist at Nuveen, told “Closing Bell” that the failure of a stronger-than-expected first half of the season to boost the market as a whole was cause for concern.
“Another thing that bothers me is that a lot of companies come out with much lower earnings than expected, stocks initially go up and then they disappear. Too many actions falling on good results. The market is just tired and needs a rest, ”Doll says.
Shares of Facebook and Twitter, which also publish results Thursday afternoon, rose in extended exchanges after other Pinterest social media shares reported strong growth in their income and monthly active users. Pinterest shares jumped 28% after-hours trading.
On Thursday, there will also be a preliminary reading of US gross domestic product for the third quarter. Economists polled by Dow Jones forecast 32% growth on an annualized basis, but even this historic jump would leave the economy well below what it was before the Covid-19 pandemic and there are signs that the pace of recovery has slowed in recent months. .
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