Stock futures rise slightly after a rollercoaster week

Traders on the floor of the NYSE, August 4, 2022.

Source: NYSE

Stock futures rose slightly in overnight trading on Sunday as investors waited for big earnings reports to arrive.

Dow Jones Industrial Average futures gained about 50 points. S&P 500 and Nasdaq 100 futures both rose 0.3%.

The S&P 500 just came out of its fourth negative week in five with a 1.6% loss last week. Warmer than expected inflation reading stoked wild price swings in the markets as investors readjusted their expectations for upcoming Federal Reserve rate hikes.

“As inflation remains elevated for longer and the Fed moves further up, the risk rises that the cumulative effect of policy tightening will push the U.S. economy into recession, undermining the outlook for corporate earnings,” he said. Mark Haefele, CIO at UBS Global Wealth Management, in a note.

Meanwhile, the third quarter earnings season has begun. Investors are watching whether US companies will revise their outlook down in the face of stubbornly high inflation and the economic slowdown.

Bank of America must report Monday before the bell, while Goldman Sachs will release the numbers on Tuesday morning. JP Morgan and Wells Fargo reported solid results last week, as Morgan Stanley disappointed stock trading income.

Many notable tech names are also reporting this week, including netflix, You’re here and IBM. Johnson & Johnson, United Airlines, AT&T, Verizon and Procter & Gamble are other big companies on investors’ radar.

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