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Stock futures slide after Nasdaq rally as investors digest corporate earnings

Traders on the floor of the NYSE, July 19, 2022.

Source: NYSE

Stock futures fell Wednesday night as investors hoped to capitalize on a strong start to the week amid a flurry of corporate earnings.

Futures contracts linked to the Dow Jones Industrial Average lost 76 points, or about 0.2%. S&P 500 futures fell 0.3%, while Nasdaq 100 futures slid more than 0.3%.

The move in futures comes as Wall Street rebounds in July, with all three major averages hitting their highest levels in more than a month.

The Nasdaq Composite jumped nearly 1.6% on Wednesday, its fourth positive session in five. The tech-heavy index is up around 3.9% for the week.

Meanwhile, the Dow and S&P 500 each rose for the third day in four. The blue-chip index is up nearly 1.9% for the week, while the S&P 500 has gained 2.5% so far.

“The bulls seem to be returning to the market now. We’ve seen pretty sharp rallies in tech, crypto and other risky assets over the past few days,” said Callie Cox, US investment analyst at eToro. “Which is remarkable for us, because in an economy with fairly noticeable weakness, one would expect to see other parts of the market perform well. But the animal spirits are back, at least for now.”

In the first weeks of the earnings season, corporate results have largely held up so far, helping to calm fears of an impending recession.

However, reports after Wednesday’s bell were mostly mixed. Shares of Alcoa and CSX surged in extended trading after the companies beat expectations. Shares of Tesla were choppy after the automaker reported higher-than-expected profits but declining automotive gross margins.

United Airlines said it returned to profitability during the second quarter, but results fell short of expectations. The stock fell more than 6% in extended trading.

In other corporate news, Carnival shares were under pressure after the cruise line announced it was selling another $1 billion worth of stock.

On Thursday, AT&T and American Airlines are two of many big companies expected to report results before the opening bell. Investors will also be watching initial data on jobless claims, which have trended higher in recent weeks.

Stock futures slide after Nasdaq rally as investors digest corporate earnings

Source link Stock futures slide after Nasdaq rally as investors digest corporate earnings

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