Tue. Feb 7th, 2023

Stock futures were lower Wednesday as a rally that has propelled equity prices higher since mid-June appeared poised for a respite.

Futures tied to the Dow Jones Industrial Average fell 125 points, or 0.4%. S&P 500 futures and Nasdaq 100 futures slid 0.55% and 0.7%, respectively.

The Dow notched its fifth straight day of gains Tuesday. Meanwhile, the S&P 500 is going for its fifth positive week in a row as investors continue to gauge how much strength this rally has. The broad market index is now up 18% from its June lows.

“This market has been so resilient,” Brynn Talkington, managing partner of Requisite Capital Management, said on CNBC’s “Closing Bell: Overtime.” “As we’re coming to a close on earnings, earnings are going to beat by a median of about 7%.”

Though giving her “a great deal of pause” in this market is the Federal Reserve and its plans to continue raising rates and shrink the size of its balance sheet. “Earnings have still been strong, but…the Fed balance sheet hasn’t budged,” she said.

Traders on Wednesday were looking ahead to the release of U.S. retail sales data later in the morning. In the afternoon, the Federal Reserve is slated to release the minutes from its most recent meeting.

Additionally, Wall Street has been poring through corporate earnings from the retail sector. Walmart and Home Depot reported Tuesday, while Lowe’s and Target posted earnings Wednesday morning.



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