Stock futures fall as earnings season continues

A trader works on the floor of the New York Stock Exchange (NYSE) in New York, August 3, 2022.

andrew kelly | Reuters

U.S. stock futures were down Tuesday night.

Futures contracts linked to the Dow Jones Industrial Average fell 77 points, or 0.23%. S&P 500 and Nasdaq 100 futures fell 0.23% and 0.26% respectively.

United Airlines shares rose more than 1% in extended trading after the company beat Wall Street estimates last quarter, propelled by strong travel demand.

Meanwhile, shares of Moderna jumped more than 6% in extended trading after the pharmaceutical company said its vaccine targeting respiratory syncytial virus can prevent the disease in the elderly.

In Tuesday’s regular session, the Dow was down about 391 points, or 1.14%. Goldman Sachs shares fell – and lagged the 30-stock index – after the bank posted a shortfall. The S&P 500 fell 0.20%. Meanwhile, the tech-heavy Nasdaq Composite was the only major average to reverse the trend, up 0.14%.

The moves follow earnings results from big banks that suggest divergent paths, even for names in the same sector. Goldman Sachs shares fell more than 6% on lower investment banking and asset management revenue. Meanwhile, Morgan Stanley gained 5.9%, boosted by better-than-expected wealth management revenue.

“This is a really pivotal earnings season in terms of whether or not companies can weather the storm and how long they can weather it,” SoFi’s Liz Young said on Tuesday’s “Closing Bell: Overtime.” CNBC.

“I still think we’re in a space where the market tends to rally on bad news. And that’s expected to mean the Fed will slow down, the Fed will pause, the Fed will pivot, the Fed will s “will stop sooner than they say they will. And I think we’re pegging too much at this point on the Fed. It’s not just about the Fed anymore,” Young added.

Traders anticipate a series of economic reports on Wednesday, including the latest data on the producer price index and retail sales.

Economists polled by the Dow Jones expect the producer price index to have fallen 0.1% in December, compared to a rise of 0.3% the previous month.

Meanwhile, retail sales in December are expected to fall 1%, according to consensus estimates. The previous reading showed a decline of 0.6%.

The corporate earnings season will continue with results from JB Hunt Transport Services, Charles Schwab, PNC Financial Services Group and Discover on deck Wednesday.


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