Stock futures trade slightly lower, but the S&P 500 is headed for a winning week

A trader works on the trading floor at the New York Stock Exchange (NYSE) on January 26, 2023 in New York City.

Andrew Kelly | reuters

Stock futures fell slightly on Friday morning as investors capped off a victorious week for the markets, which saw better-than-expected economic growth and a pop in market-beloved Tesla.

Futures linked to the Dow Industrial Average declined 24 points. S&P 500 futures dropped 0.3%, while Nasdaq 100 futures were down 0.5%. Intel shares fell more than 9% after a disappointing earnings report, missing the top and bottom.

Shares rose during regular trading on Thursday, hailing a better-than-expected fourth-quarter GDP report on hopes that the US economy could experience a soft landing as the Federal Reserve slashes rates to ease inflation. increases in

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The Dow Jones Industrial Average gained more than 205 points, or 0.61%, marking its fifth consecutive winning season, the first streak of that length since October. The S&P 500 jumped 1.10% and the tech-heavy Nasdaq Composite jumped 1.76%.

All three indices are positive for the week and the month. The Dow and S&P 500 have gained 1.7% and 2.2%, respectively, this week. The Nasdaq is up 3.3% on the week and looks set to post its best monthly performance since July. The Nasdaq has gained over the past four weeks.

“This year’s stock market rally has been impressive and shouldn’t be overlooked,” said Chris Zaccarelli, chief investment officer at the Independent Advisor Alliance. said in Thursday’s note, ,Unfortunately, the Fed is likely to start pulling down the market again early next week, so prepare for volatility again this year; We may be in the eye of the storm and not completely out of the woods yet.”

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Tesla closed Thursday after earnings and revenue soared 11% last quarter and CEO Elon Musk estimated the carmaker could potentially produce 2 million cars this year. The stock, widely followed for leading the way in growth territory, was down 65% last year. Shares are up more than 30% this year.

On Friday, investors will keep an eye on the economic report which will give more details on the inflation situation. Personal income and expenses and pending home sales for December are due in the morning. Also payable is the personal consumption expenditure price index, a preferred inflation measure for the Federal Reserve. Consumer Sentiment for January will also be released.

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These are some of the final figures to be released before the Fed’s next interest-rate decision on February 1. Investors are currently expecting an interest rate hike of 0.25 per cent from the central bank.

The earning season is also on. American Express, Colgate-Palmolive and Chevron are among the companies to report quarterly results on Friday. Investors will be watching Chevron’s report closely after the company announced a $75 billion stock buyback and dividend boost on Wednesday.

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