Nasdaq futures are slightly lower ahead of Big Tech earnings

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Nasdaq 100 futures fell slightly late Monday after stocks rebounded in the afternoon and ahead of Big Tech earnings.

Futures contracts linked to the technology-focused index fell 0.1%. Dow Jones Industrial Average and S&P 500 futures were little changed.

In regular trading on Monday, the Nasdaq Composite jumped 1.3%. The Dow Jones rose 0.7%, after paring a 500-point loss earlier in the day, and the S&P 500 gained 0.6%.

The moves came as tech names like Microsoft, Alphabet and Meta Platforms rallied in the afternoon, amid falling interest rates and ahead of an intense week of earnings for mega-cap tech stocks. . Twitter also surged after its board accepted Tesla CEO Elon Musk’s offer to take it private.

The rebound was welcomed by investors after stocks ended the previous week on a sour note, with the Dow Jones falling in its fourth straight week and the S&P and Nasdaq posting three-week losing streaks on Friday. The tech-heavy Nasdaq is trying to break out of bear market territory, 19.8% off its all-time high.

It remains to be seen whether it is a bottom. Edward Moya, senior market analyst at Oanda, told CNBC there was still plenty of optimism about the U.S. economy and said he expected things to turn around from here.

“A third of the S&P reports [earnings] this week, and you’re probably going to see the same thing: lots of up and down beats. Companies will talk about pressure on margins and passing on price increases to the consumer, but they will still point out that there is still general optimism about the economy.”

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Between continued earnings beats and a quiet period from the Federal Reserve, there will likely be some relief recovery in the market, Moya added.

“We’re not going to be more nervous about Fed tightening because we won’t hear much about it until the May meeting,” he said.

The bull market Tom Lee, head of research at Fundstrat Global Advisors, said that while he expected a “treacherous” first half, the market was worse than expected, with inflation worsening against market expectations. Nevertheless, he remains optimistic.

“When the bond market is screaming for the Fed to be a little tighter, it’s hard for stocks to hold up and I think that’s kind of what we’re going through now, but I don’t think that means that we should sell stocks here either,” he said Monday on CNBC’s “Closing Bell: Overtime.”

“The markets just want to get an idea of ​​when this might end,” he added. “If inflation doesn’t kind of peak that’s a concern for the markets, but I also don’t think it’s set in stone that inflation will continue to be a problem even in the second half of the year. “

Technology earnings kick off Tuesday after the bell with Alphabet and Microsoft. Meta, Amazon and Apple will report later in the week. UPS and 3M are also due to report in the morning.

In economic data, investors are expecting new numbers on new home sales and consumer confidence on Tuesday morning.

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