US stock futures were flat Monday night after all three major moving averages rose during the daily trading session.
Dow Jones Industrial Average futures fell 45 points, or 0.13%. On Monday, the 30-stock index closed above its 200-day moving average for the first time since late April. S&P 500 and Nasdaq 100 futures fell 0.13% and 0.08%, respectively.
ZipRecruiter shares fell more than 5% in after-hours trading as the company cut its revenue outlook. Compass shares fell nearly 13% after the real estate agent missed quarterly sales expectations and lowered its outlook.
Early in regular trading on Monday, energy and financials stocks initially dragged markets lower after weak economic reports from China and news of an unexpected interest rate cut by the country’s central bank. Later in the day markets recovered and turned positive as consumer staples, communications services and consumer discretionary rallied.
Still, some see the recent gains as a bear market rally rather than the start of a new bull cycle.
“I think people are not sensitive enough to this economic slowdown and what it will mean for corporate earnings and profit margins,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group, on CNBC’s Fast Money.
Investors can look forward to more earnings releases in the coming week as major retailers will report. Home Depot and Walmart are expected to report results before the bell on Tuesday. Target and Lowe’s will report their quarterly results on Wednesday.
This week, investors will also be watching minutes of the Federal Reserve’s July meeting, which could offer further clues as to how the central bank will hike rates to tame inflation going forward.