Stock futures are flat after Dow and S&P 500 close at records, big tech earnings on deck

Finance

Traders work on the floor of the New York Stock Exchange (NYSE), September 22, 2021.
Brendan McDermid | Reuters

U.S. stock futures were steady in overnight trading on Monday as investors await a slew of major technology earnings with the broader market at a record high.

Dow futures rose just 20 points. S&P 500 futures gained 0.12% and Nasdaq 100 futures rose 0.2%.

Shares of social media giant Facebook ticked 3% higher in after-hours trading on Monday after the company topped analysts’ earnings expectations. Facebook missed expectations for revenue and monthly active users.

The Dow Jones Industrial Average and S&P 500 closed at record highs on Monday. The Dow gained 64 points. The S&P 500 gained 0.5%, helped by a 12% rally in Tesla’s stock as the electric carmaker hit a $1 trillion market capitalization for the first time.

The Nasdaq Composite was the outperformer, rising 0.9%. The technology-focused average is about 1.1% from its record high.

Technology darlings Alphabet and Microsoft report earnings after the bell on Tuesday. Other key reports include 3M, Eli Lilly, General Electric, UPS and Visa. Microsoft bulls are expecting a strong quarter for Microsoft, bolstered by its key Azure business. Analysts are expecting Alphabet earnings to come in 43% higher year over year.

As of the close on Monday, 84% of the 117 companies in the S&P 500 that have reported earnings beat expectations, according to Refinitiv. S&P 500 companies are expected to grow profit by about 35% in the third quarter.

“Earnings season is off to another great start, but now the big test is will the big tech names step up? With stocks at all-time highs, the bar is indeed quite high and tech will need to impress to help justify stocks at current levels,” said Ryan Detrick, chief financial strategist at LPL Financial.

Twitter, Hasbro, JetBlue, Lockheed Martin, Novartis, PulteGroup, Advanced Micro Devices, Chubb and Robinhood also report quarterly earnings on Tuesday.

New home sales will be released at 10:00 a.m. ET on Tuesday. Economists polled by Dow Jones are expecting that home sales grew 760,000 in September, up from 740,000 in August.

Articles You May Like

Palo Alto Networks beat and raise fails to wow Wall Street. But that plays into our hand
Student loan legal battles delay SAVE borrowers’ path to forgiveness
More young men are struggling financially. Here’s how that helped Trump win
The 2025-26 FAFSA is open ahead of schedule — here’s why it’s important to file for college aid early
Walmart hikes its outlook again as shoppers spend more outside the grocery aisles

Leave a Reply

Your email address will not be published. Required fields are marked *