US Stock Futures On Backfoot As Traders Await Retail Sales Data, Netflix Earnings: Strategist Warns ‘Exuberant’ Investors Against Ignoring Bond Market Signals

Stocks appear poised to reverse course on Thursday, as index futures traded modestly lower ahead of key economic data and additional earnings reports.

As of 12:49 a.m. ET on Thursday, the Dow, S&P 500, and Nasdaq futures were down about 0.20%, while the Russell 2000 futures slipped nearly 0.30%

On Wednesday, the stocks weathered a mid-session sell-off and climbed back into positive territory in the afternoon before closing higher.

The positive sentiment came as traders digested some positive earnings reports, including those from Goldman Sachs (GS) and Johnson & Johnson (JNJ), as well as tamer wholesale price inflation, and comments from President Donald Trump downplaying the potential firing of Federal Reserve Chair Jerome Powell.

The Nasdaq Composite extended its record-setting streak to three straight sessions, while the broader S&P 500 Index closed within 20 points of a record high.

Healthcare and real estate stocks led the gains, with eight of the 11 S&P 500 sectors closing in the green. Energy, communication services, and consumer discretionary stocks experienced losses. 

The Invesco QQQ Trust (QQQ), an exchange-traded fund (ETF) that tracks the Nasdaq 100 Index, ended up 0.10%, while the SPDR S&P 500 ETF (SPY) added 0.33%.

The SPDR Dow Jones Industrial Average ETF Trust (DIA) and the iShares Russell 2000 ETF (IWM) advanced 0.50% and 0.99%, respectively.

Thursday’s economic calendar is also heavily loaded with key market-moving data, including the weekly jobless claims data, June retail sales, import prices data, and the Philadelphia Fed’s regional diffusion index of manufacturing activity. All these reports are expected to be released at 8:30 a.m. ET.

The National Association of Home Builders’ housing market index is due at 10 a.m. ET. 

The final spate of Fed speeches before the blackout period preceding the July 29-30 rate-setting meeting is expected on Thursday. 

The key earnings reports on the deck include those from streaming giant Netflix (NFLX), GE Aerospace (GE), PepsiCo (PEP), Travelers Companies (TRV) and Abbot Labs (ABT).

Morgan Stanley Chief Investment Officer Lisa Shalett said equity investors are ignoring the signaling from the bond markets. According to the strategist, bond market indicators reveal lingering concerns about inflation, economic growth and U.S. debt sustainability.

Bullish investors have driven the market to record highs, on optimism that Trump’s corporate tax cuts passed in the “One Big Beautiful Bill Act” would boost capital spending and productivity, positively impacting company profits and stock returns, Shalett said.

“To be sure, the S&P 500 Index rally may have a bit more room to run. That said, potential S&P 500 gains beyond 6600 in 2026 could be difficult.”

Crude oil futures rose early Thursday, while gold futures slipped. In the currency market, the U.S. dollar regained some ground after the greenback had slid on Wednesday, reacting to the inflation data that raised hopes for a rate cut.

The major Asian markets were mostly higher on Thursday, although they showed caution ahead of key U.S. earnings and economic data.

The 10-year U.S. Treasury yield rebounded from Wednesday’s drop. 

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