US futures have declined, suggesting that major indices will expand losses as investors assess the profits and sales prospects of blue-chip companies.
Futures related to the S&P 500 and Dow Jones Industrial Average retreated almost 0.5%, indicating a second day of losses after the opening bell. The technologically strong Nasdaq-100 futures fell 0.4%.
Investors track companies’ earnings in the first quarter and their outlook for the rest of the year to see if stock valuations are justified. Strong US economic data supported expectations and fueled the recent rally which left major clues around record highs. Rising levels of Covid-19 infection in some countries and signs that the launch of the vaccine could be hesitant now dampen that optimism.
“All of these company stock prices are near or near record highs and we see a lot of people taking money off the table,” said Michael Hewson, chief market analyst at CMC Markets. “There is a general lack of momentum.”
Ahead of the opening bell, United Airlines fell 2.2% after reporting poorer-than-expected results in the first quarter. Tesla fell another 1%. The carmaker fell 3.4% on Monday, following a fatal accident involving one of its vehicles.