Stock futures were flat in early Thursday trading as traders digested a sharp rally in the previous session.
Stock futures tied to the Dow Jones Industrial Average were down 79 points, or 0.23%. S&P 500 futures fell 0.25%, while Nasdaq 100 futures fell 0.34%.
Carmax Shares fell more than 12% in premarket trading after the used-car retailer missed profit and revenue expectations. Shares of Micron Technology fell 3% premarket amid disappointing quarterly results. Under Armor shares were mixed after the sportswear maker picked Marriott executive Stephanie Linnartz to be its next chief executive.
The moves came after another positive session for stocks. On Wednesday, the Dow rose 526.74 points, while the S&P 500 and Nasdaq Composite rose 1.49% and 1.54%, respectively.
All 11 sectors of the S&P 500 rose, led by energy stocks. Shares of Nike and FedEx rallied on quarterly results, giving some investors hope that despite concerns about a downturn, companies are still doing well on earnings. Strong consumer sentiment data for December also lifted the market.
Liz Ann Sonders, chief investment strategist at Charles Schwab, said that while better earnings results may have been a factor in Wednesday’s upbeat market sentiment, oversold conditions may have contributed to the rally.
“I think there were a couple of earnings reports that were a little bit better than expected,” she said. “But I also think the market is in another correction phase and on some technical indicators, it’s a bit oversold. Buyers step in. Day-to-day volatility is hard to pinpoint directly.”
Even with Wednesday’s gains, stocks could still end the month in the red. The Dow Jones fell 3.51%, while the S&P 500 and Nasdaq lost 4.94% and 6.62% respectively. All three averages are set to break their 3-year winning streak and post their worst annual performance since 2008.
On Thursday, investors awaited jobless claims data.