Dow futures drop about 150 points ahead of Big Tech earnings
27 Jul 2021
Stock futures fell in early trading Tuesday ahead of quarterly earnings reports from several mega-cap technology companies.
Futures on the Dow Jones Industrial Average declined nearly 150 points. S&P 500 and Nasdaq 100 futures also traded in negative territory.
Shares of Tesla rose about 2.3% in premarket trading following a better-than-expected second-quarter earnings report. The electric vehicle maker passed $1 billion in quarterly net income for the first time.
“It appears that we’re going to get really solid earnings from these companies and that should give a little bit of a boost to the market. Some of these names have already run so much this year that perhaps we don’t get a large bounce,” said Victoria Fernandez, Crossmark Global Investments chief market strategist.
“Apple may be your best opportunity to see some movement because they’ve been in more of a consolidation phase over the last few months,” Fernandez added.
The major U.S. stock averages closed Monday’s regular session at record highs to each notch five-day win streaks. The Dow gained 82.76 points, or 0.24%. The S&P 500 also added 0.24% and the tech-heavy Nasdaq Composite closed 0.03% higher.
Hong Kong markets saw yet another day of heavy losses Tuesday, with the Hang Seng index dropping more than 4%.
The Federal Reserve’s two-day policy meeting also begins Tuesday. Investors are awaiting insights into the central bank’s monetary policy.
The Federal Open Market Committee will release a statement when the meeting concludes Wednesday, followed by Chairman Jerome Powell’s news conference.