Dow Set to Creep Higher In Another Massive Day For Wall Street Earnings

U.S. stock futures are rising, with Nasdaq-100 shares in the lead after Tesla and Microsoft reported upbeat results.

U.S. stock futures are inching up with the release of company earnings from 3M, Twitter and Raytheon and more. Amazon is coming later; one seasoned investor says it’s time to move on from the e-commerce retailer

Wall Street could be looking at a record-breaking session on Thursday, on the busiest day of the third-quarter earnings season. Downbeat news from 3M and weak results from Twitter were balanced by stellar results from Tesla and Microsoft.

After a 45.85-point rise for the Dow Jones Industrial Average on Wednesday, futures on the Dow were about 35 points higher. The S&P 500 closed 0.7% off a July record, while the Dow finished just under 2% away from all-time highs reached in that month.

3M reported revenue that missed forecasts and cut its full-year outlook, weighing on those shares. Twitter stock is tumbling after its third-quarter earnings also fell short.

After the close investors will hear from Amazon, and some are nervous. In recent months, the e-commerce giant’s shares been dogged by worries about the costs of one-day shipping and competition in the cloud space.

The company has reached a turning point, says chief executive of Smead Capital Management, Bill Smead. He warns investors are “blacked out” to the fact that they’re paying too much for the future earnings of Amazon and other past-decade winners like Netflix, Visa and Starbucks.

He has been pounding the table lately with the view that investors need to switch to stocks that will cater to future millennial needs — cars, houses and entertainment for their offspring.

“We want to own companies at attractive prices that are going to be where the money is made in the next 10 years,” Smead told MarketWatch.

That means retailers like Target, home builder Lennar and Disney, which will soon roll out its new streaming service, and Warren Buffett’s Berkshire Hathaway, which offers exposure to Bank of America, JP Morgan Chase and even Apple, says Smead. More of his thoughts here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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