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Nasdaq futures are slightly lower ahead of Big Tech earnings

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March 8th 2022, Traders on the NYSE

Source: NYSE

After stocks rebounded Monday afternoon, the Nasdaq 100 futures were slightly lower on Monday night. This was ahead of Big Tech earnings.

Futures that are tied to tech focused index futures fell 0.1%. Dow Jones Industrial Average futures and S&P 500 futures were little changed.

On Monday’s regular trading, the Nasdaq Composite rose 1.3%. The Dow advanced 0.7%, after cutting a 500-point loss from earlier in the day, and the S&P 500 gained 0.6%.

These moves were made as tech companies like Microsoft and Alphabet rallied during the afternoon amid falling interest rates. They also came ahead of a intense week of earnings reports for tech megacap stocks. Twitter also surged after the board announcement. accepted Tesla CEO Elon Musk’s offerYou can keep it confidential.

The bounce was welcomed by investors after stocks ended the previous week on a sour note, with the Dow falling to its fourth down week in a row and the S&P and Nasdaq hitting three-week losing streaks Friday. Nasdaq (tech-heavy) is trying to escape bear market territory. It currently sits 19.8% behind its record.

It remains to be determined if this bottom is possible. Edward Moya, senior market analyst at Oanda, told CNBC there’s still a lot of optimism about the U.S. economy and said he anticipates a relief rally from here.

“A third of the S&P is reporting [earnings] this week, and you’re probably going to see much of the same:  lots of top and bottom line beats. Although companies are likely to speak about how margin pressures have been passed on to consumers, they will still highlight that overall there is optimism for the economy.

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Moya said that the Federal Reserve will continue to issue earnings beats, which could lead to a market rally.

He stated, “We are not going to feel more anxious about Fed tightening because we won’t hear much about it until May.”

Tom Lee, Fundstrat Global Advisors’ head of research, stated that even though Tom had anticipated a difficult start to 2016, the market is worse than expected. He said inflation has increased relative to his expectations. However, he is optimistic.

He said that the stock market can’t hold up when it is screaming for Fed tighter policies. However, he added that he doesn’t believe that this means we shouldn’t be selling stocks here on Monday’s CNBC “Closing Bell” show.

“Markets want some indication of when it might end,” he said. Although it would be concerning to see inflation not reaching an endpoint, I do not believe that the problem will disappear.

After the bell rings with Alphabet or Microsoft, tech earnings will begin on Tuesday. Meta, Amazon, Apple and Meta will be reporting later in this week. UPS and 3M will also report this morning.

Investors are anticipating new numbers Tuesday morning for home sales and consumer confidence.

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