Equity futures fall to large averages after the first positive session in three

The US stock index futures contract declined overnight in Wednesday trading, eating up the gains of the biggest averages of the session.

Forward contracts linked to the Dow Jones Industrial Average fell 31 points. S&P 500 futures fell 0.15%, while Nasdaq 100 futures fell 0.15%.

Stocks rose during normal trading hours on Wednesday, losing a two-day loss as companies that reopened to the economy rose higher. The Dow advanced 316 points, or 0.93%, while the S&P 500 rose 0.93%. The Nasdaq Composite was relatively better than the major indices, rising 1.19%.

Small caps were a particularly strong point during the session, with the Russell 2000 ending the day 2.35% higher for its best day since March 1st.

The Dow and S&P 500 are less than 1% away from recovering from their record highs reached last Friday amid continued optimism about the pace of economic recovery.

“Stocks continue to shoot at almost ‘all cylinders’ and remain in a strong position as the bull expands over the cyclical, secular and increasingly defensive. [sector] with an economy on the offensive, “noted strategies of Evercore ISI.” Its sum in conjunction with rising metals and materials, a milketoast dollar and a ten-year high at 1.55%, provides the technical definition of ‘Goldilocks’ as we consolidate the powerful rally on top of key support,’ said the firm.

A busy week of earnings season continues Thursday with a number of companies reporting quarterly results.

AT&T, DR Horton, Southwest, American Airlines, Union Pacific and Biogen are among the names on the deck before the opening bell. Intel, Snap, Mattel, Boston Beer and Seagate Technology will report after the market.

Economic data released on Thursday will also give investors a snapshot of the ongoing economic recovery. The initial claims for unemployment are released at 8:30 a.m. ET, and economists expect a pressure of 603,000, according to Dow Jones estimates. Existing home sales are released at 10 a.m. ET.

A significant stimulus, with more from the Biden government, has raised economic forecasts and could raise the overall profit expectation of the consensus projection from $ 174 to $ 180- $ 185, ‘Tobias Levkovich of Citi said in a recent note . “We think equities reflect something closer to $ 190, indicating that a lot has already been priced in and that any shortfall could cause a significant pullback,” he added.