Markets

Futures Trim Gains as Economic Growth Slows

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Dow and S&P 500 futures are straddling the flatline after having returned their very modest gains into Friday's open after data that showed economic growth slowed to an annual rate of just 1.9% rattling Wall Street investors. Nasdaq futures remain higher with a comfortable gain of 0.18%.

Additionally, durable goods orders fell 0.4% last month, well below expectations for an increase of 2.6%. Excluding a 2.2% decline in transportation-related orders, durable goods orders increased an as-expected 0.5%, while November was revised higher to +1.0% from +0.5% previously.

Leading into this morning's data, futures were marginally higher as the markets continued to digest a flurry of fourth quarter results. Starbucks ( SBUX ) and Alphabet (GOOG, GOOGL) reported mixed results, Microsoft's ( MSFT ) results came in well above expectations, while American Airlines ( AAL ) crushed earnings estimates, driving the entire airline sector higher in premarket trading .

In related markets, oil futures are defensive as rising U.S. production continues to weigh on the energy market. The Baker Hughes oil rig count later this afternoon will likely show that U.S. oil and natural gas rigs increased as producers capitalize on the recent gain in oil prices . Both Brent crude and West Texas intermediate futures are nearly 1% lower.

The dollar continues to strengthen against the yen, shrugging off the disappointing durable goods and GDP data to reach a five-day high. As a result, gold is lower for a fourth consecutive day.

Up next is the University of Michigan consumer sentiment index for January, expected to inch up to 98.2 from 98.1 previously.

-Dow Jones Industrial down 0.03%

-S&P 500 futures 0.00%

-Nasdaq 100 futures up 0.18%

SENTIMENT

Nikkei up 0.34%

Hang Seng down 0.06%

Shanghai Composite Closed

FTSE-100 down 0.01%

DAX-30 down 0.18%

PRE-MARKET SECTOR WATCH

(+/-) Large cap tech: Mixed

(+/-) Chip stocks: Higher

(+/-) Software stocks: Higher

(+/-) Hardware stocks: Mixed

(+/-) Internet stocks: Lower

(+/-) Oil stocks: Mixed

(+/-) Biotech stocks: Flat

(+/-) Drug stocks: Mixed

(+/-) Financial stocks: Flat

(+/-) Retail stocks: Flat

(+/-) Industrial stocks: Flat

(+/-) Airlines: Higher

(+/-) Autos: Higher

UPSIDE MOVERS:

(+) SMCI (+9.63%) Fiscal Q3 results beat expectations, guides Q3 above street forecasts

(+) WYNN (+6.74%) Q4 revenue jumps 37% from year ago, beats Wall Street estimates

(+) SYNA (+6.04%) iscal Q2 profit and revenue exceeded expectations

DOWNSIDE MOVERS:

(-) WKHS (-13.54%) Announced underwritten public stock offering

(-) JNPR (-6.93%) Beat revenue and profit expectations but guides Q1 EPS below street estimates

(-) SBUX (-3.73%) Reported in-line earnings on below-consensus revenue

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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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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