US stock futures were mixed on Thursday after corporate earnings reports and economic data released yesterday surprised investors.
The Dow Jones Industrial Average fell 0.13% to 50,121.40, the Nasdaq Composite fell 0.16% to 23,066.47, and the S&P 500 was flat at 6,941.47.
Shares of AppLovin fell 6% despite its quarterly revenue beating expectations. Cisco Systems fell 7% after the company reported disappointing gross margins.
McDonald’s shares also fell slightly despite better earnings.
The major averages initially rose on better-than-expected January jobs data, but technology and interest-rate sensitive sectors came under pressure.
In other news, the NFP jobs report showed a gain of 130,000, far exceeding the initial forecast of 55,000.
The data pushed up Treasury yields as traders scaled back expectations for a rate cut by the Federal Reserve.
Despite the session's decline, more sectors in the S&P 500 were higher, notably the energy, consumer staples and basic materials sectors.
The situation suggests that investors are still struggling to assess the true impact of economic data and corporate reports.
The strengthening labor market is seen as countering margin pressures and uncertainty in the technology sector. This raises questions about whether the market has priced in the risk of continued high interest rates or not.
