Global Courant 2023-05-01 03:33:28
Traders work on the floor of the New York Stock Exchange.
NYSE
US stock futures were flat in overnight trading on Sunday after key averages posted gains for April, and the Dow Jones Industrial Average posted its best month since January.
Futures linked to the Dow fell 3 points, while S&P 500 and Nasdaq-100 futures fell 0.02% and 0.04% respectively.
Stocks are coming off a winning week and month. On Friday, the blue-chip index added 272 points, or 0.8%, while the S&P 500 rose 0.83%. The Nasdaq Composite rose 0.69% as Big Tech earnings took center stage.
For the month, the Dow gained 2.5%, posting its best monthly price since January, while the benchmark index gained 1.5%. The tech-heavy index posted marginal gains.
Earnings reports from major tech companies dominated much of last week’s market debate, fueling the narrative that earnings are outperforming fears despite widespread macroeconomic concerns.
So far, just over half of S&P 500 companies have reported earnings, with more than 79% and about 72% beating earnings and sales expectations, respectively. According to FactSet, first-quarter earnings are currently on track to fall 3.7%, a smaller drop than the 6.7% drop expected on March 31.
“There was definitely a very positive surprise on the big tech revenue,” said Jan Szilagyi, CEO of Toggle AI. “There was some trepidation going into earnings season,” as expectations pointed to relative weakness.
Reports from many of these tech giants helped boost market confidence, he added.
Elsewhere, CNBC reported over the weekend that regulators have called on banks to make a final bid for the embattled lender First Republic, pressured by deposit flight in the wake of the Silicon Valley Bank collapse. JPMorgan Chase and PNC are among the likely bidders.
The latest update comes after the bank reported last week that deposits fell more than 40% in the first quarter, leading to further declines in the already struggling stock. Shares are down 97% since the start of the year.
In other news, investors eagerly await the Federal Reserve’s latest rate hike decision, which will be announced Wednesday at the close of the central bank’s policy meeting. According to Sunday evening, about 79% of traders expect a rate hike of 25 basis points FedWatch from CME Group tool. Wall Street will closely monitor Fed Chairman Jerome Powell’s comments and provide guidance on the central bank’s future policy path.
Monday kicks off another busy week for earnings, with results from Norwegian Cruise Line and MGM Resorts. Reports from Pfizer, Starbucks Advanced Micro Devices and CVS Health are due later this week.
On the economic front, Wall Street is awaiting ISM Manufacturing data, construction spending and S&P Global manufacturing PMI on Monday. The April nonfarm payrolls report is out on the deck Friday.
