Stock futures edge lower as investors brace for earnings deluge

This post was originally published on this site

U.S. stock -index futures pointed to a second day of losses Tuesday, with investors bracing for a deluge of corporate results as earnings reporting season moves into full swing.

What are major indexes doing?
  • Futures on the Dow Jones Industrial Average YM00, -0.39% fell 129 points, or 0.4%, to 33,829.
  • S&P 500 futures ES00, -0.35% were down 16 points, or 0.4%, at 4,139.50.
  • Nasdaq-100 futures NQ00, -0.22% were off 41.75 points, or 0.3%, at 13,855.50.

On Monday, stocks suffered modest losses, with the Dow DJIA, -0.36% shedding 123.04 points, or 0.4%, while the S&P 500 SPX, -0.53% fell 0.5% as both indexes pulled back from record finishes posted Friday. The Nasdaq Composite COMP, -0.98% shed 1%.

What’s driving the market?

Earnings reports, which are off to a strong start for the quarter, will remain under scrutiny as investors gauge the strength of the economic recovery from COVID-19 pandemic, analysts said. Guidance from companies on the outlook for the year ahead may be even more important in determining market direction.

“Corporate outlooks may indicate whether the rally from last year’s low could continue,” said Charalambos Pissouros, senior market analyst at JFD Group, in a note.

Read: Why it may still be early days for the stock-market reflation trade

“In our view, with most major central banks suggesting that any spikes in inflation this year are likely to prove to be temporary, and staying committed to keeping their monetary policies extra loose, we believe that even if the earnings disappoint somewhat, there is a decent chance for equities to rebound again and continue trending north,” he said.

Check out: Oil prices went negative a year ago: Here’s what traders have learned since

A pickup in new COVID-19 cases even as the vaccine rollout continues was seen putting a damper on sentiment, analysts said. The U.S. has averaged 67,175 new cases a day in the past week, up 4% from the average two weeks ago. But the global new case tally almost hit a record of more than 750,000 on Sunday and Monday, according to the Washington Post, as India and Brazil remain hot spots. 

See: Why the rise in COVID-19 cases is keeping Morgan Stanley bullish on risky assets

Which companies are in focus?

Related Posts