Traders on the floor of the New York Stock Exchange
Source: The New York Stock Exchange
US stock futures fell slightly on Monday night as Wall Street prepared for the heart of corporate earnings season.
Futures contracts linked to the Dow Jones Industrial Average fell more than 90 points, or around 0.3%. Those for the S&P 500 and Nasdaq 100 also fell 0.3%.
The futures move follows a volatile day on Wall Street as the S&P 500 rose 0.4% to a new record high after falling more than 1% at the start of the session. The Nasdaq Composite also set a new record at 0.7%, while the Dow Jones Industrial Average fell 37 points, or 0.1%.
Monday’s session saw wild swings in sharply shortened stocks, including GameStop and AMC Entertainment, as retail investors bet against short-selling hedge funds, and woU.S. Stock futures tktk on Monday night as Wall Street prepared for the heart of corporate earnings season. Remember that stocks are breaking away from their fundamentals.
Tuesday brings corporate earnings from larger companies with greater impact on market indices. General Electric, Verizon, and Johnson & Johnson are expected to release results before the bell, while tech giant Microsoft is expected to release its second quarter results after the bell.
BTIG chief equity and derivatives strategist Julian Emanuel told CNBC’s Fast Money that the surge in the market over the past few weeks and high levels of bullish option buying could make it difficult for earnings reports to take another leg higher.
“This is the kind of setup that is ready for disappointment,” Emanuel said, referring to the struggles for some other stocks, although profits were beaten earlier in the season.
However, the strategist also said the recent frothy trade may not have peaked and could propel broad market indices even higher.
On the Covid-19 front, health officials and policymakers continued to warn the public about new strains of the virus. Moderna said Monday that its vaccine offers some protection against a variant found in South Africa, while officials in Minnesota reported the first US-confirmed case of a strain found in Brazil.
Investors are also waiting for results from other big tech companies and a new Federal Reserve policy statement later this week. Tuesday’s economic data includes data on consumer confidence and house prices.
Tuesday will also be the first trading session after Janet Yellen is confirmed as Treasury Secretary. The former Fed chairwoman is the first woman to hold this position.
