Stock futures haven’t changed much as Wall Street braces for a profit-packed week, Federal Reserve meeting
Traders on the floor of the New York Stock Exchange, July 6, 2022.
US stock futures were little changed Sunday night, coming off a positive week for the major averages, as traders brace for a busier week for corporate earnings, as well as insights on an interest rate hike from the Federal Reserve.
Dow Jones Industrial Average futures were down 45 points, or 0.14%. S&P 500 futures are down 0.11% and Nasdaq 100 futures are down 0.01%, respectively.
On Friday, the major averages slid on the back of weaker-than-expected earnings from Snap dragging tech stocks down. The Dow lost 137.61 points, or 0.43%. The S&P 500 fell 0.93% to 3,961.63, while the Nasdaq Composite was down 1.87% at 11,834.11.
With that said, all three benchmarks closed the week higher, with the Dow Jones up 2%. The S&P 500 advanced about 2.6%, and the Nasdaq capped the week with a 3.3% rise.
Investors turned to risky assets last week after absorbing some solid corporate results that made Wall Street deliberate whether the bear market has found a bottom.
“Stocks have managed a million dinars high, climbing a wall of anxiety. This rebound has been led by cyclical and advanced growth stocks, helped by stabilizing longer returns in the end, which in turn eases pressure on the P/E,” Barclays’ Emmanuel Kao wrote in a note on Friday.
“This assures us that market focus has shifted from inflation concerns to growth concerns, with a sense that bad news has become good news again,” Kao added.
As of Friday, about 21% of companies in the S&P 500 reported earnings. Of those, nearly 70% exceeded analyst expectations, according to FactSet.
Investors are expecting a stacked week of earnings ahead, which will include reports from big tech giants Alphabet, Amazon, Apple and Microsoft.
The Federal Reserve will also conclude its two-day policy meeting on Wednesday. Economists widely expect a rise of three-quarters of a point.