Traders on the floor of the New York Stock Exchange
Source: New York Stock Exchange
US futures fell early Tuesday morning as Wall Street prepared for the center of the corporate revenue season.
Dow Jones industrial average futures fell 50 points. Those for the S&P 500 and Nasdaq 100 also traded marginally in negative territory.
The futures movement followed a volatile day on Wall Street, which saw the S&P 500 rise 0.4% to a new record, after falling more than 1% earlier in 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 was marked by wild fluctuations in sharply shortened stocks, including GameStop and AMC Entertainment, while retail investors bet against short-selling hedge funds. This has helped fuel US futures as Wall Street prepares for the heart of the corporate earnings season amid investors worried that the shares will fall off their fundamentals.
Tuesday brings the corporate gains of larger companies, with a greater impact on market indices. General Electric, Verizon and Johnson & Johnson will report results before the bell, while technology giant Microsoft will announce its second-quarter tax gains after the bell.
BTIG’s equity and financial derivatives strategist Julian Emanuel told CNBC’s “Fast Money” that market developments over the past few weeks and the high level of options buying have made it difficult for earnings reports to fuel another stage. big.
“This is the kind of setup that is ready for disappointment,” Emanuel said, citing fights for other actions, despite the pace of earnings at the start of the season.
However, the strategist also said that the recent foamy trading may not have peaked and could push 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 Minnesota officials reported the first US-confirmed case of a strain found in Brazil.
Investors are also awaiting the results of other major technology companies and a new Federal Reserve policy statement later in the week. Tuesday’s economic releases include data on consumer confidence and house prices.
Tuesday will also be the first trading session since Janet Yellen was confirmed as Secretary of the Treasury. The former Fed chair becomes the first woman to hold this position.