Stock futures were flat in overnight trading on Monday as investors looked to big tech profits for more clues about the health of the US economy.
Futures related to the Dow Jones Industrial Average were trading flat, while the S&P 500 and Nasdaq 100 futures were down 0.05% and 0.09%, respectively.
Amazon shares fell nearly 1% in aftermarket trade due to reports of a hiring freeze, while Discover the financial shed more than 3% On disappointing earnings results.
Stocks benefited from Friday’s gains during Monday’s regular trading session, with the Dow Jones Industrial Average rising 417.06 points, or 1.3%, to close at 31499.62. The Nasdaq Composite finished 0.9% higher, and the S&P 500 added nearly 1.2%, as nine of the 11 sectors ended higher, led by Healthcare.
This week, investors are still focused on the earnings of the largest technology companies, with reports from Alphabet and Microsoft due on Tuesday. Meta Platforms reports on Wednesday, followed by Amazon and Apple on Thursday. Due to its sheer size and market capitalization, any moves are likely to drive the market forward.
So far this season, companies have proven that they may be doing better than expected. This is partly due to the fact that analyst earnings estimates have fallen in recent months as companies have faced foreign currency headwinds and other concerns about growth. This could lead to a stock rally when results may be better than concerns.
“Earnings have already fallen somewhat,” said Sam Stovall, chief investment analyst at CFRA. “Maybe investors are happy that it is up 2% and not down 2% but we are also seeing cuts in our 2023 outlook. Perhaps this bear market will have to play its part even if we get a market rally in the near term.”
Reports from UPS, General Electric, Coca-Cola and General Motors are due before the bell on Tuesday. Chipotle Mexican Grill and Texas Instruments will release a report after Tuesday’s close.
On the economic data front, S&P/Case-Shiller house prices for August, August FHFA house prices and October consumer confidence are due.
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