Spencer Platt | Getty Images
Dow Jones Industrial Average futures added 7 points, or 0.01%. S&P 500 futures inched up 0.04%, and Nasdaq-100 futures climbed 0.1%.
Levi Strauss shares dipped almost 2% in extended trading after the denim retailer lowered its revenue growth guidance for the full year, though it also raised its profit outlook.
Wall Street is coming off a losing session. The S&P 500 dipped 0.2%, pulling back from an all-time high it reached just one day prior. The Dow fell more than 340 points, or 0.7%. The Nasdaq Composite slid 0.2%.
Stocks slid as Treasury yields breached fresh highs. The 10-year yield hit 5.365%, its highest level going back to April 2002. The 30-year yield climbed to 5.732%, going back to May 2002.
Higher yields have curbed investor appetite for equities in recent weeks, especially those parts of the market most hurt by higher borrowing costs. Industrials, for example, is the worst performing sector week to date.
Many investors are maintaining an optimistic view of the stock market, however. They expect that the start of earnings season could give the market the fuel it needs for the next leg higher.
In the third quarter, the S&P 500 is expected post a blended earnings growth rate of roughly 30%, which would be a third straight quarter of above-25% earnings growth, according to FactSet.
“If earnings remain strong, and the idea is that they probably will, if expectations are met and/or higher, that is going to sustain this rally — despite the fact that rates are higher,” Courtney Garcia, senior wealth advisor at Payne Capital Management, told CNBC’s “Closing Bell.” “It’s not going to derail the market.”
On Thursday, investors will await results from PepsiCo before the open. Traders will also watch for weekly jobless claims data.
About the Author
