Stock futures are little changed on Wednesday morning: Live updates

Stock futures were lower in overnight trading, extending a losing session to kick off the holiday-shortened trading week.

Futures tied to the Dow Jones Industrial Average dropped 82 points, or 0.05%. S&P 500 futures and Nasdaq-100 futures slipped 0.26% and 0.35% respectively.

Interactive Brokers lost nearly 3% in extended trading after posting fourth quarter adjusted earnings that fell short of expectations.

Stocks finished lower during Tuesday’s session as fourth-quarter earnings season gained steam and the yield on the 10-year Treasury note marched back above 4% after commentary from Federal Reserve Governor Christopher Waller warned easing monetary policy may come slower than anticipated. The Dow fell 231.86 points, or 0.62%, while the S&P 500 and Nasdaq Composite slipped 0.37% and 0.19%, respectively.

So far, traders are pricing in a roughly 65% chance that the Federal Reserve begins cutting rates in March as hopes mount for a pivot, according to CME Group’s FedWatch tool.

Fourth-quarter earnings gain steam this week and could serve as the next major test for the market that could dictate the setup for 2024. Investors have already pored over results from major banks, including Goldman Sachs, Morgan Stanley and Bank of America.

“This reporting period may lack the splashy ‘earnings recession over’ headlines we got last quarter, but it takes on added importance because it sets the tone for 2024,” said Jeffrey Buchbinder, chief equity strategist at LPL Financial. “After 2023 was a year in which improving valuations delivered strong gains, this year, earnings will likely have to do the heavy lifting.”

Wall Street awaits December retail sales due out Wednesday. The findings could offer further insight into the health of the consumer or contribute to growth concerns should spending ease. Economists polled by Dow Jones are expecting retail sales to rise 0.4% in December, up slightly from 0.3% in November.

Earnings season carries on Wednesday with results from Charles Schwab, U.S. Bancorp and Prologis. The Federal Reserve’s beige book and business inventories for November are also slated for Wednesday, along with remarks from New York Federal Reserve Bank President and CEO John Williams.