S&P 500 Futures Are Little Changed After Amazon and Apple Post Earnings, Big Jobs Report Looms: Live Updates
Individual investor bullishness below average for 16th week in 18, AAII says
Bullishness about the outlook for stocks over the next six months stayed below its historical average for the 16th week out of the past 18, according to the latest weekly survey by the American Association of Individual Investors.
Only 20.9% of retail investors described themselves as bulls in the survey, down from 21.9% last week, 25.4% two weeks ago and 28.5% as recently as April 9. Historically, 37.5% of investors regard themselves as bullish over time.
Pessimism among individual investors about the short-term outlook for stocks increased in the latest sentiment survey, rising to 59.3% from 55.6% last week and an historical average of 31.0%.
The balance of Main Street investors say they’re neutral toward stocks.
— Scott Schnipper
Best-case scenario for trade war still isn’t good, GlobalData TS Lombard says
Even the best case scenario for markets and the U.S. economy isn’t so hot, according to Grace Fan, a global policy researcher at GlobalData TS Lombard.
The Trump administration “is clearly targeting ‘quick win’ deals with major trading partners by the end of the 90-day pause on July 9,” Fan wrote Thursday. “In the best case, such interim trade deals would accompany a budget and tariff settlement in Congress that would also head off legal challenges, especially to the ‘baseline’ universal 10% tariff,” she said.
A best case at mid-year would also result in “the China stand-off parked in a holding zone.” But, unfortunately, “even if all of that were achieved (a long shot), business uncertainty would be reduced but far from eliminated.”
The researcher argues that, “Recession risk is the key determinant of Trump seeking off-ramps: how high is his pain threshold? Probably lower than its main trade-war opponents.” At the same time, damaged confidence in the U.S. dollar and Treasurys means “there is limited fiscal policy headroom ... while tariff-related inflation pressure inhibits Fed interest rate cuts.”
— Scott Schnipper
Stocks making the biggest moves after hours
Check out the companies making headlines in extended trading:
Apple — The iPhone maker shed 2% after its closely watched Services division performed below expectations in the fiscal second quarter. Services revenue came in at $26.65 billion, lower than the $26.70 billion analysts surveyed by StreetAccount anticipated. Overall earnings and revenue during the period beat Wall Street’s expectations.
Airbnb — Shares slipped more than 4%. Airbnb expects second-quarter revenue in a range between $2.99 billion and $3.05 billion, or $3.02 billion at the middle of the range. Analysts had forecast $3.04 billion in revenue. Management noted softening trends in the U.S. segment on a sequential on a year-over-year basis due to macro uncertainty.
Amazon — The e-commerce giant fell about 4% after its second-quarter operating income guidance range missed analysts’ estimates. Amazon is forecasting operating income to land between $13 billion and $17.5 billion, which missed the $17.64 billion consensus call, according to StreetAccount. Meanwhile, Amazon managed to beat on both the top and bottom lines in the first quarter.
The full list can be found here.
— Hakyung Kim
Stock futures open lower Thursday
U.S. stock futures opened lower on Thursday night.
Futures tied to the S&P 500 slid 0.3%. Nasdaq 100 futures declined 0.5%.
Dow Jones Industrial Average futures inched down 55 points, or 0.1%.
— Hakyung Kim