Early trading mixed but Dow appears primed to extend incredible streak

Trading is mixed before the opening bell Thursday with more corporate earnings reports incoming and new data on jobs in the U.S. and housing, according to an Associated Press report. 

Futures for the S&P 500 slipped 0.2% before the bell, while the Dow Jones Industrial Average was up 0.1% and could extend its longest winning streak since 2019. 

Earnings season is picking up momentum in its second week. Wall Street analysts expect a third straight quarter of weaker earnings from S&P 500 companies, but that lowered bar makes it easier for companies to beat expectations and many, particularly banks, already have. 

Shares in American Airlines dipped 1.3% in premarket, even as the carrier beat Wall Street sales and profit targets and raised its forecast for the rest of the year. Johnson & Johnson shares are up a bit after profits and revenue topped Wall Street expectations. 

Discover Financial slid more than 12% after it disclosed that it was working with regulators to resolve an accounting error dating back to 2007 that misclassified some credit card accounts. It also said it was suspending share buybacks while it conducts an internal review. 

After the bell Wednesday, Netflix reported that its subscriber base grew while profit was weaker than forecast. Its shares sank 6.5% in pre-market trading. 

Investors were also underwhelmed by Tesla’s results, which also came after Wednesday close. Tesla shares were down 3.4% in pre-market trading. 

 The labor market has shown remarkable strength in the face of elevated interest rates, part of the Fed’s campaign to bring down four-decade high inflation. Hiring has been strong, job openings plentiful, and layoffs historically low. 

Most economists are forecasting that the Fed gets back to raising rates when it meets next week, after pausing in June for the first time in 15 months. Markets have been optimistic that it will be the Fed’s last rate increase this cycle. Recent data have shown inflation at its lowest point since early 2021 — 3% in June compared with a year earlier — and much closer to the Fed’s target of 2%.