The trading week is nearly complete and everyone is waiting to see if the Nasdaq Composite can extend its 10-session winning streak. It has the basis for doing so considering Microsoft (MSFT), Visa (V), and Skyworks Solutions (SWKS) all delivered earnings reports for the June quarter that did growth investors proud.
At the moment, though, there isn't a strong basis to expect a decidedly higher start.
The Nasdaq 100 futures are down 19 points and are trading 0.3% below fair value. That should translate into a slightly weaker start on this options expiration day, which should at least increase trading volume if nothing else.
The S&P 500 futures are down three points and are trading 0.1% below fair value, reflecting a market that is (a) tired (b) skeptical of the latest rally considering the banks and transports have not participated (c) simply waiting to see if buyers show up again or (d) all of the above.
A downturn in oil prices ($46.73, -$0.39, -0.8%), which is reportedly an offshoot of concerns about increased OPEC supply, has helped keep a lid on things this morning along with the noticeably tepid response to good earnings news.
Microsoft, for instance, is down 0.1% in pre-market trading even though it topped analysts' average revenue and earnings per share expectations, driven by impressive growth in its cloud services business. Microsoft, though, has risen 8.2% during the Nasdaq's 10-session winning streak, which is to suggest its good earnings news for the June quarter was priced in ahead of time.
Fellow Dow component Visa (V) can relate. It has risen 5.2% during the winning streak, but is up just 0.3% after posting some impressive results for its fiscal third quarter and raising its fiscal 2017 guidance.
General Electric (GE), meanwhile, is a Dow component that remains down in the dumps. It topped second quarter earnings expectations, but registered only 2% organic revenue growth for its industrial segment. Shares of GE are down 3.3% in pre-market action.
There are a number of focal points on the earnings front today, primarily because there is no economic data of note being released today.
Capital One (COF) is up 4.4% after its earnings report, Schlumberger (SLB) is unchanged, eBay (EBAY) is down 2.9%, and Colgate-Palmolive (CL) is down 1.7%.
The net effect of it all is that the cash market looks set to begin today's session on a slightly weaker note.
Plenty of political noise can still be heard in the background along with the gnashing of teeth over the perceived policy predilections of central bankers.
That will all be there on Monday morning, too, but on this Friday morning the stock market is taking a breather as it looks at good earnings news as being good more so than being an actual surprise.