Stock futures fell on Tuesday as investors looked to tech giants’ earnings for further insight into the health of the U.S. economy.
Futures linked to the Dow Jones Industrial Average fell 130 points, or 0.4%. S&P 500 and Nasdaq 100 futures fell 0.4% and 0.2%, respectively.
Amazon’s shares dipped slightly in premarket trading on reports of a hiring freeze, while Discover Financial fell more than 1% on disappointing earnings results.
Tuesday’s move comes after another strong day for stocks.
The Dow rose 417.06 points, or 1.3%, on Monday. The Nasdaq Composite added 0.9 percent and the S&P 500 gained about 1.2 percent, with 9 of the 11 sectors in positive territory, led by health care.
Investors remained highly focused on the earnings of big tech companies this week, with Alphabet and Microsoft due to report on Tuesday. Meta Platforms reported on Wednesday, Amazon and Apple on Thursday. Given its sheer size and market capitalization, any move could move the market forward.
So far this season, the company has shown that they may be doing better than expected. Analysts’ earnings estimates have dipped in recent months in part because the company has faced foreign-exchange headwinds and other growth issues. That could send stocks higher on potentially better-than-expected results.
“Earnings have really come down a lot,” said Sam Stovall, chief investment strategist at CFRA. “Maybe investors are happy because it’s up 2% instead of down 2%, but we’re also seeing a drop in the 2023 forecast. …even if we do get the recent bear market rally, this bear market may have to play out on its own.”
Reports from UPS, General Electric, Coca-Cola and General Motors are due before the market close on Tuesday. Chipotle Mexican Grill and Texas Instruments will report after the market close on Tuesday.
On the economic data front, S&P/Case-Shiller August house prices, FHFA August house prices and October consumer confidence will be released on Tuesday.