Technology companies led U.S. stocks lower before the bell on Monday as investors braced for a week of top-tier earnings that could push or pull a record high.
S&P 500 futures (ES=F) fell about 0.3%, pulling away from a new all-time closing high and a sixth straight weekly win. Dow Jones Industrial Average futures (YM=F) fell 0.2%, while contracts on the tech-heavy Nasdaq 100 (NQ=F) fell 0.6%.
Whether the records keep rolling in rides largely on whether companies’ results exceed high expectations. Earnings season is heating up this week, as more than 100 S&P 500 companies prepare to report earnings. So far, 80% of Q3 updates have exceeded those in the benchmark.
Investors are on edge over Tesla’s (TSLA) report on Wednesday, after the unveiling of its robot fell short of expectations. The electric car maker is the highlight of the week amid questions about the performance of big tech companies, even after Netflix’s strong start to its Megacap season.
General Motors (GM), Coca-Cola (KO), American Airlines (AAL), and UPS (UPS) are among many other major companies on the earnings chart this week.
Boeing ( BA ) faces a double whammy on Wednesday, as it is expected to report earnings at the same time workers vote on whether to accept a tentative deal agreed with the union to end a five-week strike. Shares of the aircraft maker rose more than 3% in early trading on Monday.
Meanwhile, oil prices recovered, rising about 2% alongside gains in Chinese stocks (000300.SS) as China’s stimulus push continued with a cut in key lending rates. Global benchmark Brent crude futures (BZ=F) traded near $74 per barrel, while West Texas Intermediate crude futures (CL=F) topped $70, also with eyes on Israel’s next move on Iran.
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