Finance

Stock futures are little changed as Wall Street braces for a busy week of earnings, Fed meeting

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Traders on the floor of the NYSE, July 6, 2022.
Source: NYSE

U.S. stock futures were little changed on Monday morning, coming off a positive week for the major averages, as traders brace for the busiest week of corporate earnings, as well as insights into further interest rate hikes from the Federal Reserve.

Dow Jones Industrial Average futures slid 35 points, or 0.11%. S&P 500 futures dipped 0.12% and Nasdaq 100 futures declined 0.08%.

On Friday, the major averages fell on the back of weaker-than-expected earnings from Snap that sent tech shares tumbling. The Dow lost 137.61 points, or 0.43%. The S&P 500 declined 0.93% to 3,961.63, while the Nasdaq Composite traded 1.87% lower at 11,834.11.

Still, all three benchmarks closed the week higher, with the Dow up 2%. The S&P 500 advanced about 2.6%, and the Nasdaq capped the week up 3.3%.

Investors shifted into risk assets last week after absorbing some strong corporate results that had Wall Street deliberating whether the bear market has found a bottom.

“Equities have managed to stage a rally MTD, and climb a wall of worry. The bounce has been led by cyclical and Growth stocks, helped by longer end yields stabilizing, which in turn eases the pressure on P/E’s,” Barclays’ Emmanuel Cau wrote in a Friday note.

“This confirms to us that the market’s focus has switched from inflation worries to growth worries, with a sense that bad news is becoming good news again,” Cau added.

As of Friday, about 21% of companies in the S&P 500 reported earnings. Of those, nearly 70% beat analysts’ expectations, according to FactSet.

Investors are expecting a stacked week of earnings ahead that will include reports from major tech giants Alphabet, Amazon, Apple and Microsoft.

The Federal Reserve on Wednesday will also conclude its two-day policy meeting. Economists are widely expecting a three-quarter point hike.

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