Stock futures slide on Sunday as Wall Street braces for a busy week of earnings

Traders on the floor of the New York Stock Exchange, April 14, 2022.

Source: NYSE

US stock futures fell late on Sunday amid a four-week losing streak for the Dow Jones Industrial Average as investors weighed the likelihood of a rise in interest rates. Wall Street is also bracing for a week full of earnings, including reports from major tech companies like Amazon and Apple.

Dow Jones Industrial Average futures lost 36 points, or 0.1%. S&P 500 futures were down 0.2% and Nasdaq 100 futures were down 0.2%.

Those moves come after Friday’s sell-off, with the Dow falling 981.36 points, or 2.8%, to 33,811.40 in what was the Dow’s worst day since October 2020. The S&P 500 it fell 2.8% to 4,271.78, or its worst day since March. The Nasdaq Composite fell 2.6% to 12,839.29.

All major averages closed lower last week, with the Dow falling 1.9% for the week, or its fourth straight weekly decline. The S&P 500 and Nasdaq fell 2.8% and 3.8% for the week, respectively, posting their third consecutive weekly decline.

“There has been severe damage in many areas of the market while money was perceived as ‘defensive’ such as Utilities, Staples, Pharma and even mega-cap growth,” said Jonathan Krinsky, chief market technician at BTIG. “Those areas, despite their strong momentum, are now easing to the downside, while low momentum names continue to trend lower.”

Investors will be keeping an eye on Twitter, which is reportedly re-examining Elon Musk’s takeover bid after the billionaire investor revealed he raised $46.5 billion in financing, according to a Wall Street Journal report, citing unnamed sources.

Wall Street is also bracing for what will be the busiest week yet in corporate earnings season. Some 160 S&P 500 companies are expected to report earnings this week, and all eyes will be on reports from big tech companies including Amazon, Apple, Google-parent Alphabet, Meta Platforms and Microsoft.

Coca-Cola is expected to report before the bell on Monday with a management call scheduled for 8:30 am ET. Other companies reporting Monday include Activision Blizzard, Otis, Whirlpool and Zions Bancorp.

Traders also expect a key measure of inflation this week. The personal consumption expenditure index will be released on the Friday before the bell. In February, core PCE jumped 5.4%.

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