Stock futures down slightly ahead of busy day of corporate earnings
Futures contracts were modestly lower on Monday evening.
Traders on the floor of the New York Stock Exchange
Source: The New York Stock Exchange
U.S. stock futures fell slightly Monday evening as Wall Street geared up for the heart of corporate earnings seasons.
The move in futures follows a volatile day in Wall Street which saw the S&P 500 rise 0.4% to a new record high after being down more than 1% earlier in the session. The Nasdaq Composite also set a new record at 0.7%, while the Dow Jones Industrial Average slipped 37 points, or 0.1%.
Monday's session was marked by wild swings in heavily shorted stocks, including GameStop and AMC Entertainment, as retail investors bet against short-selling hedge funds, fueling woU.S. stock futures tktk on Monday evening as Wall Street geared up for the heart of corporate earnings seasons.rry about stocks becoming detached from their fundamentals.
Tuesday brings the corporate earnings of larger companies with more impact on the market indexes. General Electric, Verizon and Johnson & Johnson are slated to report results before the bell, while tech giant Microsoft will announce its fiscal second quarter earnings after the bell.
BTIG chief equity and derivative strategist Julian Emanuel said on CNBC's "Fast Money" that the market's move higher over the past several weeks and high level of bullish options buying may make it hard for earnings reports to fuel another leg higher.
"This is the kind of set up that's poised for disappointment," Emanuel said, citing struggles for some other stocks despite earnings beats earlier in the season.
However, the strategist also said that the recent frothy trading may not have reached its peak and could push the broad market indexes even higher.
On the Covid-19 front, health officials and policymakers continued to caution the public about new strains of the virus. Moderna said Monday that its vaccine does provide some protection against a variant found in South Africa, while officials in Minnesota reported the first U.S. confirmed case of a strain found in Brazil.
Investors are also waiting for results from other major tech companies and a new policy statement from the Federal Reserve later in the week. Tuesday's economic releases include data on consumer confidence and home prices.
Tuesday will also be the first trading session after Janet Yellen was confirmed as Treasury secretary. The former Fed chair becomes the first women to hold the position.