Finance

Stock futures are little changed with S&P 500 on track for winning week

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Traders on the floor of the NYSE, May 17, 2022.
Source: NYSE

Stock futures were little changed in overnight trading as the S&P 500 attempted to snap a seven-week losing streak.

Futures on the Dow Jones Industrial Average shed about 25 points. S&P 500 futures were flat and Nasdaq 100 futures were marginally higher.

Retail corporate earnings continued after the market closed Thursday. Ulta Beauty shares rallied more than 6% postmarket after better-than-expected quarterly results, while Gap sunk about 13% after slashing its profit guidance.

The postmarket moves came after stocks gained in Thursday’s regular session. The Dow rose for a fifth-straight trading day, adding more than 500 points, or 1.6%. The S&P 500 climbed about 2% and the Nasdaq Composite rose nearly 2.7%.

A batch of strong earnings from the retail sector boosted market sentiment Thursday. The SPDR S&P Retail ETF gained more than 4%. Macy’s, Williams-Sonoma, Dollar Tree and Dollar General were among the leaders.

The three indexes are on track to close the week higher. The Dow is up 4.4%, the S&P 500 is 4% higher and the Nasdaq Composite is up 3.4% on the week.

Still, the averages are well off their highs, with the Nasdaq Composite solidly in bear market territory and the S&P 500 having briefly dipped more than 20% below its record last week.

The Nasdaq after Thursday’s close is down 27.6% from its record, while the S&P 500 and Dow are off by 15.8% and 11.7%, respectively.

“We think there’s a good chance for some more strength here. This is sort of a classic bear market rally or bounce off the bottom,” Troy Gayeski, chief market strategist for FS Investments, told CNBC’s “Closing Bell: Overtime” on Monday. “Inflation expectations have rolled over recently.”

On Friday, investors will be eyeing economic data releases, including personal income, consumer spending and core personal consumption expenditures.

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