Global Courant
U.S. Federal Reserve Board Chairman Jerome Powell speaks at a news conference following a meeting of the Federal Open Market Committee (FOMC) at Federal Reserve Headquarters on June 14, 2023 in Washington, DC.
Drew Anger | Getty Images News | Getty Images
Equity futures changed little on Sunday evening as investors prepared for a series of inflation data on Wednesday and Thursday and braced for the start of the second quarter earnings season.
Futures linked to the Dow Jones Industrial Average 19 points added, or 0.04%. NASDAQ 100 were flat S&P 500 futures fell about 1%.
This week’s inflation data follows a skipped rate hike at the June Federal Open Market Committee meeting. The consumer price index report is due out Wednesday morning, followed by the central bank’s preferred measure of wholesale price pressure, the producer price index, on Thursday.
Stocks are entering a new week after closing lower last week based on job data from ADP and the Labor Department. Despite growth in nonfarm payrolls cooling somewhat, investors indicated that the still-spinning economy is enough for the Federal Reserve to continue with rate hikes.
As a result, all three major indices posted losses last week. The S&P 500 fell 1.16%, while the Nasdaq Composite and Dow Jones Industrial Average fell 0.92% and 1.96%, respectively.
Nevertheless, investors should also take into account a whole series of quarterly figures. Financial giants BlackRock, JPMorgan Chase, Wells Fargo and Citi will all report and start the second quarter earnings season.
“We believe that S&P 500 earnings will come under severe pressure for the rest of the year and slide into an earnings recession,” Morgan Stanley analyst Edward Stanley wrote in a Sunday letter to investors. “The reason is negative operating leverage — when cost growth exceeds revenue growth, earnings growth takes a big hit.”
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Equity futures are flat ahead of a week of key inflation data for Wall Street and the kick-off of Q2 earnings season
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