U.S. stock futures pointed to gains at the market open on Thursday. Traders welcomed lower bond yields while grappling with tariff threats and the latest Big Tech earnings. Dow Jones Industrial Average futures rose 139 points, or 0.3%.
S&P 500 futures climbed 0.1% and Nasdaq 100 futures gained 0.1%. The technology sector will be in focus after mixed earnings. Google-parent Alphabet and ride-hailing platform Uber Technologies both slid more than 7% on Wednesday. Amazon.com is scheduled to report fourth-quarter earnings after the stock market closes Thursday.
Mark Hackett, chief market strategist at Nationwide, noted that three-quarters of companies that have reported earnings have beat estimates. This is in line with the average from the last five years. However, the degree of beat at 5% is below the long-term trend of 9%.
Stock futures versus tech earnings
The yield on the benchmark 10-year Treasury note stood at 4.438% early Thursday. It ticked up from the previous day, when it broke below 4.5%.
Treasury Secretary Scott Bessent reiterated the existing long-term debt sale plan. He said the Trump administration intends to exert downward pressure on the 10-year Treasury yield rather than calling for the Federal Reserve to cut rates. ING analyst Padhraic Garvey wrote in a research note that there is not huge room to the downside for the 10-year yield.
An effective floor is in place at just under 4%. That floor can shift lower, but would need a better reason than an approaching 10-year rate. Traders will also be positioning ahead of the nonfarm payrolls report for January, due on Friday at 8:30 a.m. Eastern time.
Economists expect the U.S. economy added 169,000 jobs, according to a Wall Street Journal survey. This is down from 256,000 in December.
