Stock futures tumbled Wednesday night as investors hoped to build on a strong start to the week amid a spate of corporate earnings.
Futures tied to the Dow Jones Industrial Average lost 76 points, or about 0.2%. S&P 500 futures were down 0.3%, while Nasdaq 100 futures were down more than 0.3%.
The move in futures comes as Wall Street rebounds in July, with the three major moving averages hitting their highest levels in more than a month.
The Nasdaq Composite was up nearly 1.6% on Wednesday, its fourth positive session in five. The tech-heavy index is up about 3.9% this week.
Meanwhile, the Dow and S&P 500 each rose on the third day in four. The blue-chip index is up almost 1.9% this week, while the S&P 500 is up 2.5% so far.
“The bulls seem to be coming back into the market now. We’ve seen some pretty strong rallies in technology, crypto and other risk assets over the past few days,” said Callie Cox, US investment analyst at eToro. “Which is remarkable to us because in an economy with some pretty remarkable weakness you would expect other parts of the market to do well. But the animal spirits are back, at least for now.”
So far in the first few weeks of the earnings season, corporate results have broadly held and helped allay fears of an impending recession.
However, the reports after the bell rang on Wednesday were mostly mixed. Alcoa and CSX shares rose in extended trading after the companies beat expectations. Tesla’s shares wobbled after the automaker reported stronger-than-expected earnings but shrinking auto gross margins.
United Airlines reported that it returned to profitability in the second quarter, but results fell short of expectations. The stock fell more than 6% in extended trading.
In other company news, Carnival’s shares came under pressure after the cruise line announced plans to sell another $1 billion worth of shares.
On Thursday, AT&T and American Airlines are two of several large companies set to report results ahead of the opening bell. Investors will also be watching the Initial Jobless Claims data, which has shown an upward trend over the past few weeks.
https://www.cnbc.com/2022/07/20/stock-market-news-futures-open-to-close.html Stock futures slide after Nasdaq rally as investors digest corporate earnings