Stock futures rise after Nasdaq’s third straight win

I believe earnings are actually a catalyst for the market, says Virtus' Joe Terranova

Stock futures edged higher on Wednesday as Wall Street made a positive start to 2023 so far.

Futures linked to the Dow Jones Industrial Average rose 92 points, or 0.3%. S&P 500 and Nasdaq 100 futures each rose 0.3%.

The Nasdaq Composite rose 1.01% on Tuesday to achieve its first three-day winning streak since November. The S&P 500 and Dow rose 0.70% and 0.56%, respectively, and all three averages turned positive for the year.

2023 has so far brought a relief rally for riskier areas of the market, such as tech, but many investors are still cautious ahead of earnings season and expected rate hikes from the Federal Reserve.

“I think it will be a challenge trying to time the Fed eventually start cutting rates,” said Matthew Palazzolo, senior investment strategist at Bernstein Private Wealth Management. ‚ÄúThere is some evidence that better markets are ahead when the Federal Reserve begins to decline rates. But whether that ends in 2024 or late 2023, at least for the time being, sitting in mid-January, it is also Difficult situation.”

There’s a lighter schedule for economic data on Wednesday, but investors will be gearing up for a key inflation report on Thursday and key bank earnings on Friday.

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