Stock futures changed little on Monday night after a record-breaking session earlier in the day, with investors waiting for more corporate earnings from big companies.
Contracts on the S&P 500 came in just above the flat after the blue chip index rose to a record high during the regular trading day. The future of Dow and Nasdaq changed little. Shares of Tesla (TSLA) fell in late trading after the company’s first-quarter sales earnings missed estimates, although earnings and gross margins for cars exceeded expectations.
Earnings results will pick up on Tuesday, with companies like Microsoft (MSFT), Alphabet (GOOGL) and Starbucks (SBUX) ready to report results. The Big Tech names reporting Tuesday and later this week, in particular, will be closely watched, with these stocks largely underperforming the broader market over the past year as the 2020 tech and growth-led rally cooled and investors turned cyclical instead. and value stocks.
“Aside from Google, you get the FAANG stock, which has been dead for 7, 8, 9 months now,” Matt Maley, Miller Tabak’s managing director and chief market strategist, told Yahoo Finance Monday. “We see Facebook trying to break out, Amazon finally trying to get to the top of its range, Netflix couldn’t get out last week so that was a disappointment. So if those things could finally pick up, that would be positive [for stocks]. “
Tuesday also marks the first of the Federal Reserve’s two-day interest rate meeting, where the event is unlikely to trigger any major shifts in monetary policy. Officials have expressed their commitment to keep policies highly accommodative during the pandemic recovery, including keeping interest rates close to zero so far and maintaining an aggressive asset purchase program at a monthly rate of $ 120 billion.
“The Fed has been very clear that it will wait for inflation this time before responding.” Kelsey Berro, JPMorgan Asset Management Fixed Income Portfolio Manager, told Yahoo Finance. “In the past, they have relied on their forecasts, and their forecasts have really not done a good job. Inflation has consistently missed the mark over the decades. And this time they are taking a different approach. They will wait for the data before responding.”
Monday 7:01 a.m. ET: Stock futures may get higher
This is where the markets traded late Monday:
S&P 500 futures (ES = F): 4,179.75, 0.25 points or 0.01% higher
Dow Futures (YM = F): 33,873.00, down 5 points or 0.01%
Nasdaq Futures (NQ = F): 14,016.00, 4.5 points or 0.03% higher
A trader is calling outside the New York Stock Exchange (NYSE) on Wall Street in New York City on July 20, 2020. – Wall Street stocks were mixed in early July 20, 2020, as markets awaited the congressional debate later in the week on another round of stimulus spending and significant earnings numbers. (Photo by Johannes EISELE / AFP) (Photo by JOHANNES EISELE / AFP via Getty Images)
Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck
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