Stock futures edged higher in overnight trading on Wednesday after the S&P 500 and the Dow Jones Industrial Average slipped from their record highs.
Dow futures rose 50 points. S&P 500 futures and Nasdaq 100 futures both traded 0.1% higher.
Shares of Twilio fell more than 12% despite a beat on both earnings and revenue for the third quarter, after the company projected a fourth-quarter loss. Ebay also fell, by 5%, on weak fourth-quarter revenue guidance. Ford, however, jumped almost 9% on strong earnings.
Investors awaited the first estimate for third-quarter annualized gross domestic product growth from the Commerce Department. Economists polled by Dow Jones expected an increased of just 2.8% as products remained stranded at normally bustling ports, employers struggled to find workers and consumers battled with inflation.
On Wednesday, the S&P 500 slipped 0.5% for its first down day in three as the rally on a strong earnings season started to ease. The blue-chip Dow dipped more than 250 points, falling for the first time in four days.
Major averages have been marching higher on earnings momentum this month. The S&P 500 has gained 5.6% in October, on pace to post its best month since November 2020. The Dow is up 4.9% this month, while the tech-heavy Nasdaq Composite has rallied 5.5%.
Nearly 40% of S&P 500 companies have reported earnings and more than 80% of them beat Wall Street expectations, according to CNBC calculations. S&P 500 companies are expected to grow profit by about 37.6% in the third quarter.
“Earnings have helped and a reminder that US reporting so far has been better than the long-term average in terms of beats,” Jim Reid, head of thematic research at Deutsche Bank, said in a note. “It has still been healthier relative to some of the stagflationary gloom stories seen through September and early October which has perhaps helped the relief rally.”
This article was originally published on CNBC