News

# U.S. stock futures edge lower as investors brace for earnings deluge

#
U.S. stock futures edge lower as investors brace for earnings deluge

Apple to offer product update

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,
    -0.35%
    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,
    -0.26%
    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?
  • Apple Inc.
    AAPL,
    +0.51%
    was expected Tuesday to provide an annual update to high-end iPads, along with other new products, and introduce a paid subscription option within its podcast app when it holds an event in New York. Apple shares were down 0.3% in premarket action.

  • Shares of International Business Machines Corp.
    IBM,
    -0.35%
    were up 3.1% in premarket trade after the tech giant topped Wall Street estimates with a surprise rise in revenue, snapping a four-quarter streak of sales declines.

  • United Airlines Holdings Inc.
    UAL,
    -1.58%
    lost more than $1.3 billion in the first three months of 2021, but executives said that an adjusted cash flow metric flipped to positive and promised that new international routes to countries that allow vaccinated travelers will help the airline recover from the devastation of the COVID-19 pandemic. Shares fell 2.8%.

  • Johnson & Johnson
    JNJ,
    +0.28%
    onTuesday reported first-quarter profit and sales that topped expectations, citing strength in its pharmaceutical business and continued recovery in medical devices. Shares were off 0.5%.

  • Shares of Procter & Gamble Co.
    PG,
    -0.47%
    were little changed after the maker of consumer staples reported fiscal third-quarter earnings that beat estimates and said it would be raising prices on certain product categories.

  • Shares of Philip Morris International Inc.
    PM,
    -1.33%
    were down slightly even after the cigarette seller reported first-quarter profit and revenue that beat expectations, as growth in heated tobacco units shipments helped offset declines in cigarette shipments. 

  • Shares of Kansas City Southern
    KSU,
    -0.43%
    soared 21% in premarket trading Tuesday, after The Wall Street Journal reported that Canadian National Railway Co.
    CNI,
    -0.54%
     
    CNR,
    -0.34%
    was planning to make a buyout bid for the railroad operator of roughly $30 billion, which would top Canadian Pacific Railway Ltd.’s
    CP,
    -1.07%

    CP,
    -0.83%
    previously agreed on buyout bid. 

If you liked the article, do not forget to share it with your friends. Follow us on Google News too, click on the star and choose us from your favorites.

For forums sites go to Forum.BuradaBiliyorum.Com

If you want to read more News articles, you can visit our News category.

Source

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close

Please allow ads on our site

Please consider supporting us by disabling your ad blocker!