Traders on the NYSE floor, August 4, 2022.
Source: New York SE
Stock futures fell in overnight trade on Tuesday.
Futures on the Dow Jones Industrial Average fell 106 points, the Nasdaq 100 lost 0.8% and the S&P 500 futures fell 0.5%.
Microsoft shares fell about 1%, reversing earlier gains in after-hours trading. First, shares rose after the tech giant reported earnings per share in the fiscal second quarter that beat analyst estimates. However, shares fell after the company made lackluster guidance when it announced earnings.
Investors are braced for high-profile corporate earnings amid fears of a recession. So far, more than 70 S&P 500 companies have reported fourth-quarter earnings, and 65% of them have reported better-than-expected results, according to Refinitiv.
“With the majority of earnings still ahead of the market, the question of whether the shift towards growth signaled by recent rallies is warranted could be answered by positive earnings surprises and solid guidance,” said Quincy Krosby, LPL’s chief global strategist Financially.
Tesla, Boeing, IBM and AT&T are among the companies scheduled to release numbers on Wednesday.
The overnight action followed a three-day winning streak for the blue-chip Dow. All three major moving averages are up at least 1% for weeks.