A trader works on the floor of the New York Stock Exchange on Oct. 20, 2023.
Michael Nagle | Bloomberg | Getty Images
U.S. stock futures were little changed Wednesday night after the Dow Jones Industrial Average notched a third-straight losing day.
Dow futures were down by 3 basis points, or 0.01%. S&P 500 futures and Nasdaq 100 futures dipped 0.04% and 0.09%, respectively.
Discover shares slid 7% even after the financial services company reported fourth-quarter revenue of $4.20 billion, topping estimates of $4.10 billion, according to analysts polled by LSEG.
Wall Street is coming off a losing session for the major averages, as Treasury yields rose. On Wednesday, the 30-stock Dow dropped 94.45 points, or 0.25%. The S&P 500 slid 0.56%, and the Nasdaq Composite lost 0.59%.
During the session, the 10-year Treasury yield topped 4.1%.
Investors worried that a strong December retail sales report, which suggests a robust consumer, could mean fewer rate cuts from the Federal Reserve than many are expecting. Currently, markets are pricing in a roughly 56% chance of a quarter percentage point rate cut in March, according to the CME FedWatch Tool.
“The fact that the Fed is not talking about raising rates is a good thing, but the fact that the market’s pricing six rate cuts is a problem,” Chris Toomey, managing director at Morgan Stanley, said on CNBC’s “Closing Bell” on Wednesday.
“If you look at the fourth quarter, so much of that performance was chasing, right, and chasing and chasing,” Toomey continued. “And now people are like, ‘Wait, do I really want to own this thing at this level?’ And if rates are starting to go higher, you’re going to get a lot of weak hands selling.”
On the economic front, weekly jobless claims are on deck Thursday morning, as are housing starts and building permits data. Atlanta Fed President Raphael Bostic is also set to speak.