Dow futures drop more than 100 points ahead of Big Tech earnings
27 Jul 2021
Stock futures were lower in early morning trading on Tuesday ahead of quarterly earnings reports from several mega-cap technology companies.
Futures on the Dow Jones Industrial Average declined 126 points. S&P 500 futures and Nasdaq 100 futures also traded in negative territory.
The moves lower came as Hong Kong markets saw yet another day of heavy losses, with the Hang Seng index dropping more than 4%.
Shares of Tesla rose about 1% after hours Monday following a better-than-expected second-quarter earnings report. The electric vehicle maker passed $1 billion in quarterly net income for the first time.
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.
“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 Federal Reserve’s two-day policy meeting is also set to begin Tuesday. Investors are awaiting insights into the central bank’s monetary policy.
The Federal Open Market Committee and the Board of Governors are scheduled to release a statement after the meeting ends Wednesday.