Stock futures are still ahead of key corporate earnings
US stock futures were unchanged in overnight trading on Monday as investors prepare for the next corporate profits.
Dow futures rose 35 points. S&P 500 futures gained 0.04% and Nasdaq 100 futures were flat.
The main averages fell on Monday, driven by the general weakness in the tech sector. The Dow Jones Industrial Average lost more than 120 points, hurt by a more than 1.5% decline in Intel stock.
The S&P 500 fell more than 0.5%.
The Nasdaq Composite was the relative underperformer, falling nearly 1% as Facebook, Amazon and Microsoft all closed lower. Tesla fell more than 3% as Bitcoin – which makes up part of Tesla’s balance sheet – fell over the weekend after an all-time high of $ 64,841 on Wednesday morning, according to Coin Metrics.
The small-cap benchmark Russell 2000 fell 1.4% on Monday.
“Real estate and healthcare had another good day last week to build on outperformance and technology stocks pulled back today after a strong start into April,” said Jim Paulsen, chief investment strategist at Leuthold Group. “The US dollar’s recent decline this month has accelerated today, driving raw material prices higher, keeping energy stocks below today’s market leaders.”
The first quarter earnings season got off to a good start last week, major US banks reported. Financial results exceeded expectations by 38%, while others in the S&P 500 surprised upward by 12%, according to data from Credit Suisse.
The winning season continues on Tuesday with streaming giant Netflix after the bell. Wall Street analysts expected Netflix to remain a winner in the streaming space even as the pandemic recovery improves.
More big reports from Johnson & Johnson, Procter & Gamble and Travelers land before the market opens. CSX and Interactive Brokers publish the results after the bell.
“The bond market will remain a focal point this week after last week’s inexplicable slump in 10-year bond yields amid surprisingly strong economic data. The 10-year return, which is back above 1.6% today, is being driven by both bonds and Stock traders are watching stocks closely this week to see if the next move is back above 1.7% or if the technical level is retested below 1.5%, “Paulsen added.
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