US stock futures tread water with top tech earnings on tap
U.S. stock index futures moved little in evening deals on Monday, as a rebound on Wall Street stalled in anticipation of earnings from some of the country’s biggest technology firms later this week.
More cues on U.S. interest rates were also on tap, specifically from key inflation data that is likely to factor into the Federal Reserve’s outlook on policy. Fears of higher-for-longer interest rates were a major factor in a recent rout on Wall Street.
S&P 500 Futures steadied at 5,049.0 points, while Nasdaq 100 Futures were flat at 17,340.50 points by 19:07 ET (23:07 GMT). Dow Jones Futures rose slightly to 38,487.0 points.
Tesla kicks off tech earnings parade
Electric vehicle maker Tesla Inc (NASDAQ:TSLA) will report its quarterly earnings after the bell on Tuesday. The EV maker is set for what analysts described as a “nightmare quarter,” after it clocked its first quarterly drop in deliveries in four years.
Tesla slid 3.4% on Monday to a 15-month low, and fell another 0.3% in aftermarket trade after it slashed the prices of its cars across several key regions- risking a new price war and presenting even more pressure on its margins.
Including Tesla, four of the “Magnificent 7” stocks are set to report earnings this week. Facebook owner Meta Platforms Inc (NASDAQ:META) will report earnings on Wednesday, followed by Microsoft Corporation (NASDAQ:MSFT) and Google owner Alphabet Inc (NASDAQ:GOOGL) on Thursday.
Markets will be waiting to see whether the country’s biggest companies can justify a solid melt-up in their valuations through the first quarter.
The headline tells you that the stock market is currently in a holding pattern (treading water) before some important events. Here’s a breakdown of what it means:
- US stock futures: These are contracts that predict the future price of stocks. So, this headline is talking about the overall direction of the US stock market before it opens for trading.
- Tread water: This is an idiom that means to stay in one place without making much progress. In this context, it means that the stock market isn’t going up or down much right now.
- Top tech earnings on tap: This means that there are reports coming out soon from some of the biggest tech companies about how much money they made recently (their earnings). Investors are waiting to see these reports before they decide how to trade stocks.
Overall, this headline suggests that investors are cautious right now and waiting for more information before making any big moves in the stock market.