Stock futures were muted in early trade on Thursday as traders digested a sharp rally from the previous session.
Stock futures tied to the Dow Jones industrial average fell 27 points, or 0.1%, while S&P 500 futures and Nasdaq 100 futures were marginally lower.
Micron technology Shares fell 3% in the premarket Disappointing quarterly results. Under Armor shares Switched between profits and losses After Sportswear maker Marriott executive Stephanie Linnards was selected as its next CEO.
These moves followed another positive session for stocks. On Wednesday, the Dow closed at 526.74 points, while the S&P 500 and Nasdaq Composite rose 1.49% and 1.54%, respectively.
All 11 S&P 500 sectors ended the day with gains, led by energy. Shares of Nike and FedEx rose on quarterly results, with some investors hoping earnings would be decent despite concerns about a decline. Strong consumer sentiment data for December also buoyed markets.
While better earnings results factored into Wednesday’s upbeat market sentiment, oversold conditions may have contributed to the rally, says Liz Ann Saunders, chief investment strategist at Charles Schwab.
“I think there were a couple of earnings reports that came out that were slightly better than expected,” he said. “But I think the market is in another correction phase, and with some technical action, a little oversold. Buyers have stepped in. Day-to-day movements are difficult to put a direct finger on.”
Even with Wednesday’s gains, stocks are on pace to end the month with losses. The Dow fell 3.51%, while the S&P 500 and Nasdaq fell 4.94% and 6.62%, respectively. All three major averages are slated to break 3-year winning streaks It posted their worst annual performance since 2008.
On Thursday, investors await earnings results from CarMax and jobless claims data.