Stock Futures Slip Reflects Doubts Markets Can Go Much Higher
NEW YORK ( TheStreet) -- Stock futures were slipping Thursday despite better-than-expected earnings from Facebook
Futures for the S&P 500 were down 6 points, or 2.89 points below fair value, to 1,677.75.
Futures for the Dow Jones Industrial Average were behind by 70 points, or 48.24 points below fair value, to 15,430. Futures for the Nasdaq were rising by 4 points, or 17.74 points above fair value, to 3,052 as Facebook soared 23.2% to $32.66 in premarket trading after beating second-quarter earnings estimates on Wednesday, led by strength in mobile revenue.
The social networking giant earned 19 cents a share on revenue of $1.813 billion for the quarter, as mobile advertising revenue accounted for 41% of advertising revenue. Total advertising revenue was $1.6 billion, 88% of total revenue, and up 61% from last year.
The S&P 500 slipped Wednesday, shying away from topping the 1,700 mark after coming within just points of what would have been a milestone mark for the index as caution prevailed.
Many on Wall Street remain skeptical that U.S. equities can make further additional gains after having already been boosted by investors optimistic that the Federal Reserve will sustain the stimulus measures that have lifted stock markets for more than 18 months. Better-than-expected earnings have provided a boost to sentiment though investors appear cautious about becoming further invested in this market.
"The S&P 500 is dealing with psychological resistance at 1700 and is very overbought on a short-term basis," Sam Stovall, chief equity strategist at S&P Capital IQ in Manhattan, said in a note. "We believe that once this price consolidation ends, the "500" could head up to the 1750 to 1765 area, based on the size of the recent reversal pattern and a Fibonacci extension based on the size of the latest pullback."