The stock futures opened a little lower on Thursday evening after a record session earlier in the day. Strong earnings results and more encouraging economic data help support the youngest leg with higher risk-weighted assets.
Amazon (AMZN) stocks rose in late trading after reporting results for the first quarter and projections for the current quarter that exceeded expectations. Online shopping was still booming even as more personal businesses reopened. Shares of Twitter (TWTR), on the other hand, declined after the current quarter’s revenue forecast fell below estimates, disappointing investors who had hoped the company’s ad sales would pick up more to match trends from peer social media companies like Snap correspond to (SNAP) and Facebook (FB).
Overall, companies that make up around two-thirds of the S&P 500’s market cap have so far reported results, 84% of which have beat estimates, according to Credit Suisse analyst Jonathan Golub. Stocks hit new highs this week amid signs of a rebound in corporate earnings and activity, as well as more cautious news from the Federal Reserve. A new report on Thursday showed that U.S. gross domestic product rose at an annual rate of 6.4% in the first quarter, bringing total production within striking distance of its prepandemic levels.
Nio Inc. reported quarterly results and sales ahead of Wall Street’s expectations on Thursday, but renewed investor concerns about the supply chain and the impact of the chip shortage affecting the Chinese electric car maker and other automakers around the world.
Wall Street financiers cheered cautiously on Thursday after hearing that New York City was set to reopen fully on July 1. They long for the pre-pandemic pre-pandemic work-life gatherings and meals, but also loathe local transportation, packaged office elevators, and conventional store clothing. New York Mayor Bill de Blasio announced on Thursday his intention to get things back to normal. New York Governor Andrew Cuomo, who oversees the reopening decisions, was optimistic that this could happen before July 1st.
While concerns about soaring inflation throughout the economy and possible tax hikes remain, investors have at least temporarily allayed those fears until further developments emerge on both fronts.
“The economic environment is still very encouraging. I think there’s a lot of really strong tailwind behind this recovery, be it vaccination history, fiscal history and clearly an earnings season that’s going very well, “JPMorgan Asset Management global market strategist Jack Manley told Yahoo Finance. “But I wouldn’t necessarily be surprised if the markets moved more or less sideways.”
“This positive background does not mean that the current period of low volatility will continue. We anticipate bouts of market turmoil as investors fret over rising inflation and uneven global progress in fighting the pandemic, ”said Mark Haefele, chief investment officer for global wealth management at UBS, in a statement Thursday. “With global stocks near record highs, the market is also likely to be vulnerable to disappointing news about the economy or COVID-19.”