Stock futures were largely flat Wednesday night as investors continued reacting to the Fed’s rate hike and concerns over a potential economic downswing.
The Nasdaq 100 was up 10 points or 0.09%. Dow Jones Industrial Average futures rose by 41points, or 0.14%. S&P 500 futures increased 4 points, 0.11%.
Costco stock was down about 2.6% in extended trading. Although the retailer posted fiscal fourth-quarter revenue and earnings that topped analysts’ expectations, it is seeing higher freight and labor costs.
Thursday brought another day of losses as the market remains poised to end the week below where it started. The Nasdaq Composite decreased 1.4% to 11,066.81. The S&P 500 fell 0.8% to 3,757.99, while the Dow Jones Industrial Average ended the day 107.10 points lower at 30,076.68, which is a loss of 0.3%.
With the latest pullback, the Dow has given up about 2.4% this week. Both the S&P and Nasdaq saw slightly sharper declines, falling 3% and 3.3%, respectively, week to date.
Bond yields also continued their upward ascent, with the 2-year and 10-year Treasury notes hitting highs not seen in more than a decade.
Industrials, consumer discretionary, growth tech and semiconductors were all industries hit amid fears of easing growth in the economy. Meanwhile, defensive stocks outperformed.
“You’ve just got this volatility that nobody seems to be able to get their head around,” said Tim Lesko, a senior wealth advisor at Mariner Wealth Advisors.
Lesko said more investors are starting to accept that a recession may be on the horizon after the Fed’s decision this week to hike rates by 75 basis points and FedEx CEO Raj Subramaniam saying on CNBC last week that he believed one was imminent. Once that happens, Lesko said investors will react differently.
“At some point, they’ll figure out that recession doesn’t mean the end of the world, and they’ll start getting constructive on stocks again,” he said. “But right now, we’re acting as if the sky’s falling.”
Costco, Scholastic shares fall after reporting earnings
Scholastic shares fell 3.3% after sharing declines of 82% and 74% in operating income and earnings before taxes in the first quarter compared to the same period a year ago. The children’s book maker saw a 1% increase in revenue.
Costco, the wholesale retail chain, was down about 2.6% after reporting its third-quarter earnings. Though the company posted expectation-beating increases in earnings per share and revenue that also marked improvements from a year ago, the company reported increases in freight and labor costs.
— Alex Harring
Futures start flat in post-market trading
Stock futures were flat after another tumultuous day, as investors continue grappling with the Federal Reserve’s decision to up rates and worries about the health of the economy.
Dow Jones Futures went up 41 points, or .14%, to 30,190. The S&P 500 was up 4 points, which translates to .11%, at 3,776. The Nasdaq 100 rose 10 points, .09%, to 11,575,50.
— Alex Harring