Microsoft (MSFT) overshadowed Meta (META) and Tesla (TSLA) after reporting Q4 earnings that showed slower cloud growth. MSFT shares dropped 6.14% in after-hours trading, pulling the Nasdaq 100 E-mini and the S&P 500 E-mini into the red. Meanwhile, Meta and Tesla rallied 6.64% and 2.16%, respectively, in after-hours trading on strong earnings results, limiting the morning losses for the Nasdaq 100 E-mini and S&P 500 E-mini.
Later on Thursday, US economic data and corporate earnings will influence sentiment. Economists expect initial jobless claims to increase from 200k (week ending January 17) to 205k (week ending January 24).
A larger-than-expected rise in claims, nearer 250k, would likely boost bets on a June Fed rate cut and support demand for risk assets. However, a lower reading is unlikely to impact risk appetite, given the Fed’s focus on inflation.
Meanwhile, the earnings calendar is likely to have more influence on US stock futures, given the optimism over Q4 earnings. Caterpillar (CAT), Mastercard (MA), Visa (V), and Apple (AAPL) are among the marquee names to release earnings results for the fourth quarter.
Strong earnings could send US index futures toward their record highs, supporting the bullish medium-term outlook.
Key Technical Levels for Dow Jones, Nasdaq 100, and S&P 500
Despite the morning losses, the Dow Jones E-mini, the Nasdaq 100 E-mini, and the S&P 500 E-mini remained above their 50-day and 200-day EMAs. The EMAs signaled a bullish bias, aligning with positive fundamentals.
Near-term trends will hinge on geopolitical risks, earnings, Fed chatter, the BoJ’s policy stance, and US economic indicators. Key levels to monitor include:
Dow Jones
- Resistance: the January 13 record high of 49,901, and then 50,000.
- Support: 49,000 followed by the 50-day EMA (48,576).