Stock futures decline after major averages post first positive session in three

U.S stock indication futures declined in overnight trading on Wednesday, eating into the major averages’ gains from the session.

Futures wrinkles tied to the Dow Jones Industrial Average slid 53 points. S&P 500 futures dipped 0.23%, while Nasdaq 100 comings declined 0.24%.

Stocks rose on Wednesday during regular trading hours, snapping a two-day losing streak, as performers tied to the economy reopening led the way higher. The Dow advanced 316 points, or 0.93%, while the S&P 500 rose 0.93%. The Nasdaq Composite was the commensurate outperformer of the major indices, rallying 1.19%.

Small caps were a particular point of strength during the session, with the Russell 2000 conclusion the day 2.35% higher for its best day since March 1.

The Dow and S&P 500 are less than 1% away from reclaiming their document highs, reached last Friday, amid ongoing optimism over the pace of the economic recovery.

“Stocks persist to fire on almost ‘all cylinders’ and remain in a strong position as the bull expands across the cyclical, secular, and increasingly the defensive [sector] with an conservation on the offensive,” noted strategists at Evercore ISI. “The sum of which in conjunction with rising metals and materials, a milquetoast dollar, and a 10-year at 1.55%, offers the specialized definition of ‘Goldilocks’ as we consolidate the powerful rally atop key support,” the firm said.

A busy week of earnings pep up will continue on Thursday with a host of companies set to report quarterly results.

AT&T, D.R. Horton, Southwest, American Airlines, Joining Pacific and Biogen are among the names on deck before the opening bell. Intel, Snap, Mattel, Boston Beer and Seagate Technology wishes report after the market closes.

Economic data released Thursday will also give investors a snapshot of the developing economic recovery. Initial jobless claims will be released at 8:30 a.m. ET, with economists expecting a print of 603,000, according to reckons from Dow Jones. Existing home sales data will be released at 10 a.m. ET.

“Significant stimulus, with innumerable coming from the Biden administration, has driven economic forecasts up and might push overall EPS expectations from the $174 consensus ledge currently to $180-$185,” Citi’s Tobias Levkovich said in a recent note. “We think that equities are over something closer to $190, which suggests that much is already priced in and that any shortfall could induce a meaningful pullback,” he added.