Dow and S&P 500 futures slip as investors anticipate big tech earnings

Stock futures fell on Tuesday as investors looked to big tech earnings for more clues about the health of the US economy.

Futures for the Dow Jones industrial average fell 90 points, or 0.3%. S&P 500 futures fell 0.1%, while Nasdaq 100 futures rose 0.2%.

Amazon shares fell slightly in premarket trading on reports of a hiring freeze. JetBlue and Xerox were among the stocks that fell before the hour after reporting earnings that didn’t beat expectations. Coca-Cola and General Motors rose on better-than-expected reports.

Tuesday’s moves came after another strong day for stocks.

The Dow rose 417.06 points, or 1.3%, on Monday. The Nasdaq Composite added 0.9% higher and the S&P 500 added roughly 1.2%, with nine of 11 sectors leading gains led by health care.

“The market has become so accustomed to real price volatility that it’s almost desensitized,” said Jeff O’Connor, head of U.S. market structure for LiquidNet. “And wild moves make trading conditions very difficult.”

With reports from Alphabet and Microsoft looming on Tuesday, investors are laser-focused on the biggest tech companies’ earnings this week. Meta platforms report on Wednesday, Amazon and Apple on Thursday. Given their sheer size and market capitalization, any moves will move the market forward.

So far this season, companies have proven that they can perform better than expected. That’s because analysts’ earnings estimates have fallen in recent months as companies face foreign exchange headwinds and other growth concerns. This can set the stock up for better rallies than feared outcomes.

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Sam Stovall, chief investment strategist at CFRA, said: “Maybe investors are happy because it’s up 2% and not down 2%, but we also see reductions in 2023 projections. This bear market will probably play itself out, even if we get a near-term bear market rally.”

UPS, GE and Coca-Cola all reported earnings before Tuesday. Chipotle Mexican Grill and Texas Instruments will report after the close on Tuesday.

On the economic data front, S&P/Case-Shiller August home prices, FHFA August home prices and October consumer confidence are scheduled to be released on Tuesday.

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