Dow futures fall 170 points to start week on key inflation data, earnings ahead

Dow futures fall 170 points to start week on key inflation data, earnings ahead
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Traders on the floor of the New York Stock Exchange.

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Stock futures are lower on Sunday night as markets recover from a tumultuous week and traders await key reports that could provide insight into the health of the economy next week.

futures related to Dow Jones Industrial Average It decreased by 0.6% to 29,175 points. S&P 500 futures fell 0.7% to 3,626.25 points, while Nasdaq 100 futures fell 0.8% to 11,014.25 points.

Market watchers generally consider the week ahead to be the start of earnings season with the world’s four biggest banks – JPMorgan, Wells Fargo, Morgan Stanley and citi – report on Friday. PepsiCo, Delta and dominoes is among the companies reporting next week.

Inflation will also take center stage as new monthly Consumer Price Index data arrives on Thursday morning.

It will last for a week for market participants. The first half brought a relief rally that sent the S&P 500 up more than 5% in its biggest two-day gain since 2020.

But there will be job data that economists say Keep the Federal Reserve on track to continue raising interest rates and OPEC+ has decided to reduce oil supply It rattled investors, watering down gains at the end of the week. By the end of the day’s trading on Friday, the S&P was up 1.5% from where it started the week. Dow and Nasdaq gained 1.5% and 0.7%, respectively.

Still, the Dow, S&P 500 and Nasdaq had its first positive week in four. However, all remain significantly lower through 2022, and the Nasdaq is less than 1% off its 52-week low.

In the meantime, 2-year treasury yield It increased by 6 basis points and closed at 4.316%. One basis point is equal to 0.01%.

“The direction of the stock market is likely to be lower because either the economy and corporate earnings will slow significantly or the Fed will have to raise interest rates further and keep them higher for longer,” said Chris Zaccarelli, chief investment officer at the Independent Advisor Alliance, on Friday. day

“Given the conditions in which we operate, we believe it is prudent to prepare for a downturn,” he said. “The current narrative-du-jour about a shallow recession makes us look a lot like last year’s ‘inflation is temporary’ story.”

Last week raised concerns that corporate earnings would show the ugly side of a rising dollar. Levi Strauss was the last to cut guidance due to sliding international sales.

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