Stock futures unchanged after Dow Jones and S&P 500 start year at all-time highs

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Futures tied to major Wall Street benchmarks were mixed heading into overnight trading on Wednesday after stocks closed higher for the fourth straight day on the heels of Big Tech earnings.

However, the equity winning streak was overshadowed by disappointing fourth-quarter results from Facebook parent company Meta (FB), which released numbers that missed estimates after Wednesday’s bell. The results sent the shares down more than 20% in post-trade trading. Contracts on the technology-focused Nasdaq Composite fell 1.68% following the results, while futures on the S&P 500 and Dow Jones Industrial Average were muted.

Meta reported Q1 2022 revenue, a key figure for market watchers, that fell short, with the company estimating between $27 billion and $29 billion for the current quarter, below analysts’ expectations of 30 .25 billion dollars. The company’s ability to continue to navigate Apple’s recent privacy changes (AAPL) that allow iOS users to not let their apps track them around the web was also a focus of near-term concern.

Facebook’s fourth quarter report comes amid a prolific week of earnings season. Amazon (AMZN) is set to release numbers after market close on Thursday, marking the last of five heavyweight companies that make up about a quarter of the S&P 500’s total market capitalization to reveal 2021 year-end performance numbers. Shares of Alphabet (GOOGL), which reported results on Tuesday, surged in Wednesday’s session after the tech giant beat quarterly sales and earnings estimates and announced a 20-pound stock split. for 1.

Investors gauged Big Tech earnings against a divisive jobs report released Wednesday. ADP reported that U.S. private sector employers cut 301,000 jobs in January, marking the first decline since December 2020 as the Omicron variant put a damper on the labor market recovery.

“The conclusion for investors is likely a temporary blow to an otherwise strong recovery we’re seeing in job markets,” Jim Smigiel, CIO of SEI, told Yahoo Finance Live. “It’s not too surprising that we see a bit of weakness.”

The ADP report was a prelude to the Labor Department’s official monthly jobs report due out on Friday. Consensus economists expect 150,000 nonfarm payrolls to return in January, a figure that would mark the slowest pace of hiring since December 2020 as the impact of the latest COVID waves catches up with economic data.

“This is one of those things where we’re going to have to get used to the short but superficial economic damage that we’ve seen from the last variant,” Art Hogan, chief market strategist B Riley-National, told Yahoo Finance Live.

Jared Bernstein, a member of the White House Council of Economic Advisers, told Yahoo Finance Live that this month’s numbers are likely to be “distorted” by a number of Americans who tested positive for the virus during of the last wave of unpaid leave that is not tracked on the payroll.

Anxiety over central bank policies rattled markets in January. The S&P 500 posted a negative return of 5.26% for January 2022 – marking its worst month since the benchmark plunged 12.5% ​​in March 2020 after COVID-19 upended the global economy . Meanwhile, the Nasdaq Composite (^IXIC) narrowly avoided its worst January on record after losing 8.98% for the month.

As equities appear to be emerging from their January rout, some strategists say the worst of Fed jitters may be behind us.

“In some ways, we could be on top of the ferocity in terms of market expectations,” said Tony DeSpirito, CIO of BlackRock’s US Fundamental Active Equity arm. “We certainly saw that in January and at the end of last year – a change in tone from the Fed and now the market has reset expectations and started to price them in.”

Sawchuk Wealth founder Terry Sawchuk told Yahoo Finance that the recent hawkishness of Fed policymakers has stemmed political pressure to make it look like they’re fighting inflation. “I think the Fed is going to drop all of that at some point,” he said.

6:03 p.m. ET: Nasdaq plunges into overnight trade after Facebook failure

Here’s how the major benchmarks fared in extended trading on Wednesday night:

  • S&P 500 Futures Contracts (ES=F): -32 points (-0.70%), to 4,545.25

  • Dow futures (JM=F): +44 points (+0.12%), to 35,536.00

  • Nasdaq futures contracts (NQ=F): -260.75 points (-1.68%) to 14,853.75

  • Raw (CL=F): -0.43$ (-0.49%) at 87.83$ per barrel

  • Gold (CG=F): -$2.70 (-0.15%) at $1,807.60 per ounce

  • 10-year cash flow (^TNX): -3.4 bps for a yield of 1.7660%

A trader works on the floor of the New York Stock Exchange at the closing bell on January 14, 2022, in New York, NY. (Photo by TIMOTHY A. CLARY/AFP) (Photo by TIMOTHY A. CLARY/AFP via Getty Images)

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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