Stock Futures Mixed as Apple Tumbles
NEW YORK (TheStreet) -- Stock futures were trading mixed Thursday even after better-than-expected labor market data as Apple(AAPL) shares declined after the tech giant posted a disappointing revenue outlook.
Futures for the Dow Jones Industrial Average were up 12 points, or 14.83 points above fair value, at 13,731. Futures for the S&P 500 were down 2 points, or 1.26 points below fair value, at 1488. Futures for the Nasdaq were falling 39.25 points, or 35.72 points below fair value, at 2719.
Apple shares dropped more than 10% in after-hours trading Wednesday after the tech giant's revenue trailed forecasts, earnings per share fell and profit margins shrank. Apple shares were plunging by more than 9% in premarket trading Thursday.
The market overall is maintaining a bullish tone, according to strategists, with the S&P 500 reaching new highs in trading the prior session.
"We've seen lots of talk about how over-extended the market is here and how 'bullish' everyone has become all of a sudden," said Ryan Detrick, senior technical strategist at Schaeffer's. "My only take on this is we saw some similar scenarios last year around this time, yet the market continued to grind higher for several months. Could we be seeing a repeat of that? I wouldn't bet against it."
"From a technical perspective, the stock market appears to us to be in a fluid grind higher with extremely low price volatility, which is typical during strong intermediate-term advances," said Sam Stovall, chief equity strategist at S&P Capital IQ. "They take the form of a narrow rising channel where every little price dip is supported by demand and can frustrate investors waiting for a pullback to raise equity exposure."
The Labor Department said Thursday that initial jobless claims fell by 5,000 in the week ended Jan. 19 to 330,000, down from the previous week's unrevised figure of 335,000. Economists were expecting an increase to 355,000. The four-week moving average was 351,750, a decrease of 8,250 from the previous week's average of 360,000.
Continuing claims for the week ended Jan. 12 fell by 71,000 to 3.157 million, down from the prior week's upwardly revised level of 3.228 million.