Stock futures fall on Sunday as Wall Street prepares for a busy profit week

Traders based on the NYSE, April 14, 2022

Source: NYSE

US stock futures fell on Sunday night amid a four-week series of losses for the Dow Jones Industrial Average as investors estimated the likelihood of rising interest rates. Wall Street is also preparing for a week of accumulated profits, including reports from major technology companies such as Amazon and Apple.

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

These movements come after Friday’s sell-off, with the Dow falling 981.36 points, or 2.8%, to 33,811.40 on the worst day for the Dow in October 2020. The S&P 500 fell 2.8% to 4,271 , 78 points, or the worst day of March. The Nasdaq Composite fell 2.6% to 12,839.29.

All major averages fell last week, with the Dow falling 1.9 percent for the week or the fourth consecutive weekly decline. The S&P 500 and Nasdaq fell 2.8% and 3.8% respectively for the week, marking the third consecutive weekly decline.

“There was serious damage in many areas of the market as the money turned into alleged ‘defenses’ such as utilities, Staples, Pharma and even mega-capitalization growth,” said Jonathan Krinski, chief marketing technician at BTIG. “These areas, despite their strong momentum, are now falling lower, while low-momentum names continue to decline.”

Investors will watch Twitter reportedly review Elon Musk’s takeover bid after the billionaire investor revealed he had secured $ 46.5 billion in funding, according to a Wall Street Journal report, citing unnamed sources.

Wall Street is also preparing for what will be the busiest week so far in the corporate earnings season. About 160 S&P 500 companies are expected to report profits this week, and all eyes will be on reports from major technology companies, including Amazon, Apple, Alphabet, a parent of Google, Meta Platforms and Microsoft.

Coca-Cola is expected to report before the bell on Monday by calling management at 8:30 a.m. ET. Other companies reporting on Monday include Activision Blizzard, Otis, Whirlpool and Zions Bancorp.

Traders also expect a key indicator of inflation this week. The personal consumer spending index is expected to be released on the Friday before the bell. In February, the core PCE jumped 5.4%.