A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, July 13, 2022.
Brendan McDermid | Reuters
Stock futures were flat after the Dow Jones Industrial Average fell more than 200 points in Monday trading, reversing earlier gains as earnings season resumes in earnest.
Dow Jones Industrial Average futures rose 6 points, or 0.02%. S&P 500 futures rose 0.07% and Nasdaq 100 futures fell 0.01%. Shares of IBM fell more than 4% in the hours after the tech company initially lowered its cash-flow forecast, even as the earnings report beat Wall Street’s earnings and revenue estimates.
Earlier, the Dow fell more than 200 points to end the day in the red, reversing a morning rally boosted by solid earnings reports from Goldman Sachs and Bank of America. Oil has crossed $100 a barrel and bitcoin has surged to its highest level since mid-June.
At the end of the session, the stock was dragged down Bloomberg’s report that Apple will slow hiring and spending on growth next year in preparation for a potential recession. Shares of the iPhone maker ended the day down about 2.1%.
Monthly homebuilder sentiment dropped 12 points to 55, lowest since the start of the pandemic, according to a report Monday from the National Association of Home Builders. Confidence is under pressure across a range of economic sectors as the Federal Reserve continues its campaign to raise interest rates to curb high inflation. The Fed’s next policy meeting ends on Wednesday, July 27.
However, whether the US will experience a recession, and its potential duration and depth, remains a matter of debate.
“When we think about earnings and think about where stocks are right now, we think there is going to be an uptrend simply because there could be volatility,” said Julian Emanuel, senior managing director of Evercore ISI. the overvaluation of this recession that some say is imminent or has already happened to us.” , on Monday Quick money on CNBC.
Second quarter business results continued this week. Johnson & Johnson and Hasbro will report quarterly results by the bell on Tuesday, with Netflix reported after the market close. Later next week, Tesla, United Airlines, American Airlines, Snap, Twitterr and Verizon are among those scheduled to report.
