Stock futures flat after S&P, Nasdaq starts the week lower

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, the United States, May 13, 2022.

Brendan Mcdermid | Reuters

US stock index futures were flat during Monday night trade after the S&P 500 and Nasdaq Composite continued their downward march after a volatile session.

Futures contracts linked to the Dow Jones Industrial Average lost 26 points. S&P 500 futures fell 0.8%, while Nasdaq 100 futures were flat.

During regular trading, the S&P fell 0.39%. In a volatile session, the benchmark index rose 0.56% at one point, while losing about 1% at the session low.

The Dow Jones Industrial Average experienced a similar surge, though the 30-stock index was up 0.8% at the closing bell, buoyed by Chevron and UnitedHealth.

The Nasdaq Composite, meanwhile, was the underperformer for the session as the carnage in technology stocks continued. The tech-heavy index ended the day 1.2% lower and is now 28% below its all-time intraday high set on Nov. 22.

“In a way, the poor performance of technology and growth companies this year is a kind of payback for the impressive returns these market segments have recently produced,” UBS said in a note to clients on Monday.

The tailwinds of the pandemic — a surge in stay-at-home spending and low interest rates — have since turned into headwinds. Now consumer spending is shifting and interest rates are rising.

“While we believe long-term interest rates have peaked for now, growth stocks are still expensive relative to value stocks,” UBS added.

Investors will also be watching key economic data on Tuesday, with retail sales numbers arriving at 8:30am ET followed by industrial production numbers later in the morning.

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Inflation concerns increasingly weighed on equities, and some investors feared the economy could eventually slide into recession.

“We are seeing clear late-cycle indicators and while the risk of a slowdown in economic growth or a recession has steadily increased over the first four and a half months of this year, we are now beginning to surpass a probability level that will result in a base case recession later this year and Beginning of next,” Darrell Cronk, president of the Wells Fargo Investment Institute, wrote in a note Monday.

The company added that it should ultimately be a “relatively mild contraction in economic growth and short-lived.”

With most of earnings season in the rearview mirror, a number of companies are on deck for Tuesday, including Walmart, Home Depot and JD.com.

As of Friday afternoon, of the more than 90% of the S&P 500 that have released quarterly results, 78% of companies have beaten earnings expectations, while 75% have beaten sales forecasts, according to data from Refinitiv.

https://www.cnbc.com/2022/05/16/stock-market-futures-open-to-close-news.html Stock futures flat after S&P, Nasdaq starts the week lower

Jane Marczewski

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