NYSE traders brace for earnings amid recession fears; Dow, Nasdaq & S&P 500 futures down.
This week, traders on the floor of the New York Stock Exchange (NYSE) have seen stock futures drop in early trading. Futures on the Dow Jones Industrial Average, Nasdaq 100, and S&P 500 all declined, with shares of Microsoft dropping 1% after initially rising in after-hours trading following the company’s fiscal second quarter per-share earnings exceeding analysts’ estimates.
Investors are now bracing for more high-profile corporate earnings amid fears of a recession. Refinitiv reports that so far, more than 70 S&P 500 companies have reported fourth-quarter earnings, and 65% of them posted stronger-than-expected results. Quincy Krosby, chief global strategist at LPL Financial, believes that the market’s recent rallies could be justified by upside earnings surprises and solid guidance.
On Wednesday, Tesla, Boeing, IBM and AT&T are all slated to post their numbers. This follows a three-day winning streak for the Dow, with all three major averages up at least 1% week to date.
Overall, investors are closely watching the corporate earnings reports to determine whether the recent market rallies are justified. With more than half of the S&P 500 companies having already reported better-than-expected results, investors are hopeful that the remaining companies will follow suit. The market’s reaction to the corporate earnings reports will be closely watched by traders and investors alike.
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