Traders work on the New York Stock Exchange.
Stock futures were trading lower on Tuesday morning as investors looked to continue building momentum from early 2023 and expected more corporate earnings.
Futures tied to the Dow Jones Industrial Average lost 54 points, or 0.16%. S&P 500 futures fell 0.32 percent, while Nasdaq-100 futures fell 0.51 percent.
All three major indices rose after a positive first two weeks of trading in the new year. The Nasdaq Composite led the way, up 5.9%, as investors bought shares in technology companies amid rising hopes of an improving landscape for growth stocks. The S&P 500 and Dow have advanced 4.2% and 3.5%, respectively, since the start of the year.
The gains came amid the first crop of inflation-related data, which investors saw as an indication of a shrinking economy, with hopes that it would give the Federal Reserve reason to hold off on raising interest rates again. Last week’s consumer price index for December showed prices cooled 0.1% from the previous month, but prices were still 6.5% higher than the same month a year ago.
Investors’ focus is now turning to corporate finance as earnings season begins. Banks take center stage Friday as investors is absorbed comments about the likelihood of a recession. Goldman Sachs and Morgan Stanley are set to report before the bell on Tuesday, followed by United Airlines after the market close.
“The economic data has been good to say the least, which is not something we’ve been given for most of the year just gone,” said Craig Erlam, senior market analyst at OANDA. “The question now is whether earnings season will reinforce this new sense of hope or spoil the party before it’s really started.”
Investors will also be keeping a close eye on news from this week’s World Economic Forum meeting in Davos.
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