Stock futures pull back from record levels

Stock futures opened lower Thursday evening as investors took in another batch of earnings results and more data on the pace of the economy recovery.

Contracts on the S&P 500 edged lower by about 0.3% as the overnight session kicked off. The blue-chip index had hit record intraday and closing highs during the trading day on Thursday. Dow and Nasdaq futures also moved lower. 

Snap (SNAP) shares sank more than 20% in late trading after missing third-quarter revenues and offering weak current-quarter guidance, with Apple’s iOS privacy updates denting the social media platform’s advertising business. Shares of Intel (INTC) sank after the company said margins would be under pressure for the next up to three years, in part reflecting challenges from global materials shortages. And Chipotle (CMG) shares ticked down despite posting better-than-expected third-quarter same-store sales, though the company flagged widespread staffing shortages. 

Despite the mixed earnings results Thursday afternoon, the S&P 500 and Dow have hovered within striking distance of their all-time highs, boosted by a string of earlier estimates-topping quarterly corporate profits and economic data. Both have served to stave off concerns over a decelerating growth environment after a surge in reopening activity earlier this year. 

New data on Thursday showed weekly jobless claims improved to their lowest level since March 2020 last week, falling more-than-expected as firings, layoffs and other involuntary separations slowed further in the labor market. And existing home sales posted their biggest jump since September 2020, showing still-robust demand for homes even as inventory remained tight and prices crept higher.

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And based on quarterly results so far, many companies have shown they managed to grow profits even in the face of rising input and labor costs and supply chain challenges.

“Let’s not forget, we’re coming off of very high margins, so there is room for a little compression there. What we’re seeing in the early earnings releases which is maybe the reason for equity markets hitting new highs is that the operating leverage inside of companies right now is so significant,” Gibson Smith, Smith Capital Investors founder, told Yahoo Finance Live on Thursday. Think of top-line growth in the 18% arena, or you see bottom-line growth in the 50, 60, 70%. These are all positives for corporate America, and I think will actually be the fuel to launch equity prices to higher levels.”

Investors are hoping for more affirmation on the solid trends seen so far in corporate profits next week, with a more robust set of third-quarter earnings results due for release. The heavily weighted stock index components, from Apple to Amazon and Facebook, are set to report quarterly results throughout next week.

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6:07 p.m. ET Thursday: Stock futures edge lower

Here’s where markets were trading Thursday evening: 

• S&P 500 futures (ES=F): -13.25 points (-0.29%), to 4,528.50

• Dow futures (YM=F): -31 points (-0.09%), to 35,449.00

• Nasdaq futures (NQ=F): -93.75 points (-0.61%) to 15,385.00

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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter