U.S. stock futures are little changed ahead of more earnings reports
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Traders are seen working on the New York Stock Exchange’s floor (NYSE), in New York City, 12 January 2022.
Brendan McDermid | Reuters
Stock futures in the United States were unchanged Monday night, as traders awaited corporate earnings reports.
Futures linked to the Dow Jones Industrial Average increased by 27 points or 0.1%. S&P 500 futures rose marginally, and Nasdaq 100 futures dipped 0.1%. The Martin Luther King holiday caused the U.S. market to be closed on Monday.
This week’s shortened trading will include quarterly reports from 35 companies. S&P 500All inclusive Bank of America, UnitedHealth Netflix. Goldman SachsIt will also post its latest quarterly figures Tuesday prior to the bell.
Large banks Wells Fargo, JPMorgan Chase CitigroupOn Friday, the earnings season kicked off with all three companies posting higher-than-expected profits. But, market reactions to these results were mixed. Wells Fargo’s shares gained on these results while JPMorgan Chase, Citigroup and JPMorgan Chase both lost ground.
Overall, 26 S&P 500 companies have reported calendar fourth-quarter earnings thus far, according to Refinitiv. Nearly 77% reported bottom-line results exceeding analyst expectations.
In a last week note, UBS Global Wealth Management CIO Mark Haefele stated that the economic background for the fourth quarter was favorable. This bodes well for revenue and profit growth. Even though omicron disruption is affecting some businesses, the guidance from companies seems to indicate that there will be continued demand strength through 2022.
Ever since the news about the Covid-19 variant of the micron omicron emerged, there have been questions regarding the state of world economic recovery. Some regions and countries have reinstated social distancing and lockdowns to stop the spread.
However, recent data indicates the spread may be easing. According to Johns Hopkins University data, the average daily number of new infections in New York has fallen over seven days since reaching a record earlier in this month. Maryland’s daily infection rate is down by 27% from week to week. The UK and South Africa are seeing a decline in cases.
Rocky start to the Year
Monday’s move comes as equity have had a difficult start to 2022.
The Dow, S&P 500 and Nasdaq Composite are all down for the year amid concerns over the recent inflationary surge and the prospect of tighter monetary policy from the Federal Reserve.
Patrick Harker, President of Philadelphia Fed, told CNBC last Wednesday that rates could be raised three to four more times this year by the central bank. Harker noted that inflation has “gotten worse.”more persistent than we thought a while ago.”
Tech, the biggest S&P 500 sector by market cap, has been hit especially hard this year, falling more than 4%. The year has seen big tech companies like Meta Platforms (Amazon, Netflix and Alphabet) all drop.
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