A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., December 4, 2023.
Brendan Mcdermid | Reuters
U.S. stock futures climbed Wednesday as the S&P 500 and Dow Jones Industrial Average tried to rebound from a two-day slide.
Futures tied to the 30-stock Dow rose 47 points, or 0.1%. S&P 500 futures and Nasdaq 100 futures added 0.3% and 0.4%, respectively.
Cloud company Box was a notable loser in early trading, tumbling nearly 13% after reporting third-quarter results that came in below analyst expectations. MongoDB slipped 3% even as the company beat analysts’ estimates. On the other hand, homebuilder stock Toll Brothers gained nearly 2% after exceeding expectations on the top and bottom lines.
The moves came after a trading session where both the Dow and the S&P 500 closed lower for the second day in a row, dropping 0.2% and 0.06%, respectively. The Nasdaq Composite gained 0.3% to end the day.
Despite these losses, the past five weeks of consecutive gains means that all three stock indexes are still on track to end the quarter and year with big gains.
Looking past this rally, come the new year Wolfe Research chief investment strategist Chris Senyek sees disappointment ahead for investors. In his base case scenario, Senyek sees the S&P 500 dropping 8% by the end of 2024.
“We think the lagged impacts of the Fed rate hikes are going to really start to hit the economy in the first half of next year,” he said on CNBC’s “Closing Bell: Overtime.”
As inflation falls, companies will lose their pricing power because they lose their ability to pass prices through the consumers, he said. Senyek also expects that higher risk aversion and slower earnings growth will put additional pressure on stocks next year.
Traders will be keeping their eyes on Campbell Soup, which is set to report quarterly earnings before Wednesday’s opening bell.