Stock futures trade higher as investors evaluate latest batch of earnings

Stock futures rose Thursday morning as investors took in more big corporate earnings reports.

Futures tied to the Dow Jones Industrial Average rose 204 points, or 0.6%. S&P 500 futures added 0.67%, and Nasdaq 100 futures gained 0.89%.

Several companies reported their quarterly results after the bell, including Disney, MGM, Mattel and Affirm. Disney shares gained more than 5% in after-hours trading after the company posted smaller subscriber losses and a beat on top and bottom lines.

Investors have been watching earnings season closely for insight on how companies have fared amid high inflation and clues on how they’re managing going forward.

In the regular trading session, the Dow fell by 207 points, or 0.6%. The S&P 500 slid 1.1%, and the Nasdaq Composite dropped 1.7%.

The next phase of the 2023 rally could depend on the Federal Reserve’s next steps on policy. Earlier this week, Fed Chair Jerome Powell said inflation is easing, but rates could still rise.

“The next level that the rally could go to would be about that 4,300, that gets you back to the August high. But then once we would get to 4,300, we’d be trading at 19 and a half times earnings – that’s really, really expensive, unless you have a Fed that’s actively easing policy,” Cameron Dawson, chief investment officer at NewEdge Wealth, told CNBC’s “Closing Bell: Overtime.”

“The technicals have certainly improved – they look better than at any time in 2022 and so we have to respect that – but from a fundamental perspective, we really see a challenge of getting anywhere north of that,” she added.

On Thursday, investors are looking forward to another batch of earnings reports. Hilton, PepsiCo and Kellogg are scheduled to report their results before the bell Thursday morning. PayPal, Lyft and Expedia will report after the market closes.

In economic data, traders are also keeping an eye on weekly unemployment claims, due out at 8:30 a.m. ET.