U.S. equity futures pointed lower on Thursday, signaling that stocks may lose ground at the open after two straight sessions of mixed trading.
Market sentiment is being pressured by a sharp pre-market decline in Disney (NYSE:DIS), whose shares are down 6.0 percent after the company posted fiscal fourth-quarter earnings that topped expectations but delivered revenue below forecasts.
Some of the downward momentum could be tempered, however, following President Donald Trump’s signing of legislation last night that officially brought an end to the longest government shutdown in U.S. history. The measure restores funding for most federal agencies through January 30th, paving the way for the return of key U.S. economic releases and helping reduce uncertainty for investors.
Still, questions remain over the government’s data calendar. White House press secretary Karoline Leavitt told reporters Wednesday that the October employment and CPI figures are “likely never being released” due to the extended shutdown.
On Wednesday, the major U.S. benchmarks once again diverged, repeating Tuesday’s split performance. The Dow pushed to another record close, while the tech-heavy Nasdaq continued to ease.
The Nasdaq shed 61.84 points, or 0.3 percent, to 23,406.46. The S&P 500 managed a modest 4.31-point gain, or 0.1 percent, closing at 6,850.92. The Dow jumped 326.86 points, or 0.7 percent, to finish at 48,254.82.
The Dow’s climb was bolstered by notable strength in UnitedHealth (NYSE:UNH), Goldman Sachs (NYSE:GS) and Cisco Systems (NASDAQ:CSCO).
In contrast, the Nasdaq’s continued softness reflected ongoing concerns about stretched valuations, even as Advanced Micro Devices (AMD) delivered a standout move. AMD surged 9.0 percent after CEO Lisa Su said the company’s annual revenue growth is expected to average more than 35 percent over the next three to five years. She also noted that AMD could secure “double-digit” market share in data center AI chips, a segment currently led by Nvidia (NASDAQ:NVDA).
Traders were also tracking developments in Washington, where the House prepared to vote on the bill to formally conclude the historic shutdown.
Sector performance was mixed. Gold miners rallied sharply in tandem with a strong jump in bullion prices, sending the NYSE Arca Gold Bugs Index up 3.7 percent. Airline stocks also posted robust gains, with the NYSE Arca Airline Index rising 2.6 percent.
Strength in steel, pharmaceutical and semiconductor names contrasted with a sharp retreat in energy stocks, which tumbled alongside a steep drop in crude oil prices.