Nasdaq, S&P 500 Futures Slip Ahead of Microsoft, Alphabet Earnings - Analyst Points to 3 Key Things That Could Affect May's Fed Decision
Index futures trading suggests a negative open for Wall Street stocks on Tuesday ahead of earnings from tech giants Alphabet, Inc. GOOGL GOOG and Microsoft Corp. MSFT. Traders can also focus on some domestic market readings and consumer confidence data, as well as President Joe Biden's official announcement regarding a 2024 replay.
Monday trading indices:
Stock trading continued to reflect nervousness, a trend that has persisted since the start of the first quarter reporting season. The averages fluctuated inside and outside the flat line as traders priced in the impending tech profits before closing on a mixed note.
Energy stocks advanced, helped by higher oil prices, and healthcare, materials and utilities stocks saw moderate strength. On the other hand, IT, finance and real estate came under selling pressure.
Analyst Color:
Earnings, the durable goods orders report and Treasury yields are among the main catalysts that can give the market direction this week, said fund manager Louis Navellier.
He noted that 14 components of the Dow Jones and 180 companies of the S&P 500 were due to report quarterly results this week. If Treasury yields rise this week, the Fed will be more likely to raise the federal funds rate at the Federal Open Market Committee meeting scheduled for May 2-3, he said.
Navellier also sees a split vote at the May meeting. “Due to mixed signals from different Fed districts, I believe a split vote could take place at the May FOMC meeting,” he said.
Future today
In premarket trading on Tuesday, the SPDR S&P 500 ETF Trust SPY fell 0.42% to $410.88 and the Invesco QQQ Trust QQQ fell 0.42% to $410.88. 0.37% to $314.77, according to Benzinga Pro data.
Economic data coming soon:
The Federal House Finance Agency home price index for February is due at 9 a.m. EDT. The headline index may have edged down 0.1% month-on-month, reversing some of January's 0.2% rise.
The S&P/Case-Shiller home price index for February is also due at 9am EDT. The unadjusted composite house price index for 20 cities is expected to rise 0.1% month-over-month, compared to a 2.5% increase in January. On a seasonally adjusted basis, house prices may have fallen 0.4% month-over-month, the same pace of decline as in January.
The Commerce Department will release its new home sales report for March at 10:00 a.m. EDT. The consensus estimate calls for new home sales of 630,000 in the month, up from 640,000 in February.
The Conference Board is due to release its consumer confidence index for April at 10 a.m. EDT. The overall consumer confidence index is expected at 104, down slightly from 104.2 in March.
Richmond Fed should release manufacturing...
Index futures trading suggests a negative open for Wall Street stocks on Tuesday ahead of earnings from tech giants Alphabet, Inc. GOOGL GOOG and Microsoft Corp. MSFT. Traders can also focus on some domestic market readings and consumer confidence data, as well as President Joe Biden's official announcement regarding a 2024 replay.
Monday trading indices:
Stock trading continued to reflect nervousness, a trend that has persisted since the start of the first quarter reporting season. The averages fluctuated inside and outside the flat line as traders priced in the impending tech profits before closing on a mixed note.
Energy stocks advanced, helped by higher oil prices, and healthcare, materials and utilities stocks saw moderate strength. On the other hand, IT, finance and real estate came under selling pressure.
Analyst Color:
Earnings, the durable goods orders report and Treasury yields are among the main catalysts that can give the market direction this week, said fund manager Louis Navellier.
He noted that 14 components of the Dow Jones and 180 companies of the S&P 500 were due to report quarterly results this week. If Treasury yields rise this week, the Fed will be more likely to raise the federal funds rate at the Federal Open Market Committee meeting scheduled for May 2-3, he said.
Navellier also sees a split vote at the May meeting. “Due to mixed signals from different Fed districts, I believe a split vote could take place at the May FOMC meeting,” he said.
Future today
In premarket trading on Tuesday, the SPDR S&P 500 ETF Trust SPY fell 0.42% to $410.88 and the Invesco QQQ Trust QQQ fell 0.42% to $410.88. 0.37% to $314.77, according to Benzinga Pro data.
Economic data coming soon:
The Federal House Finance Agency home price index for February is due at 9 a.m. EDT. The headline index may have edged down 0.1% month-on-month, reversing some of January's 0.2% rise.
The S&P/Case-Shiller home price index for February is also due at 9am EDT. The unadjusted composite house price index for 20 cities is expected to rise 0.1% month-over-month, compared to a 2.5% increase in January. On a seasonally adjusted basis, house prices may have fallen 0.4% month-over-month, the same pace of decline as in January.
The Commerce Department will release its new home sales report for March at 10:00 a.m. EDT. The consensus estimate calls for new home sales of 630,000 in the month, up from 640,000 in February.
The Conference Board is due to release its consumer confidence index for April at 10 a.m. EDT. The overall consumer confidence index is expected at 104, down slightly from 104.2 in March.
Richmond Fed should release manufacturing...
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