Nasdaq 100 futures were mixed on Thursday morning after surging Treasury yields ended a two-day rally for the major averages.
Futures linked to the Dow Jones Industrial Average rose 0.39% or 120 points, while S&P 500 futures rose more than 0.1%, and Nasdaq 100 futures fell 0.11%.
Tesla shares dropped 4.5% in extended trading after the electric vehicle maker reported a third-quater revenue that missed analysts’ expectation, though it beat on earnings. Revenue came in at $21.45 billion, less than the $21.96 billion forecasted by analysts surveyed by Refinitiv.
During the regular session Wednesday, the major averages snapped a two-day winning streak, though all three indexes remain on track for a positive week. The Dow declined 99.99 points, or 0.33%. The Nasdaq Composite fell 0.85%, while the S&P 500 slid 0.67%.
Investors monitored rising Treasury yields for recession signals even with a stronger-than-expected earnings season underway. On Wednesday, the yield on the benchmark 10-year Treasury note traded as high as 4.136%, or its highest level since July 2008.
“We’re in this position where the Fed is in control,” Bryn Talkington, managing partner at Requisite Capital Management, said Wednesday on CNBC’s “Closing Bell: Overtime.” “The 2-year leads the Fed, and as long as the 2-year continues to go higher, we will not make a bottom in stocks, and the equity rally will not continue.”
Alaska Air Group, Freeport-McMoRan, Tractor Supply, American Airlines, Union Pacific, CSX, AT&T are set to report earnings Thursday.
On the economic front, the Philadelphia Fed manufacturing survey and the weekly jobless claims data are expected Thursday before the bell.