A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, July 13, 2022.
Brendan McDermid | Reuters
Stock futures rose Tuesday as traders braced for more corporate earnings reports a day after the market failed to sustain a sharp rally.
Dow Jones Industrial Average futures climbed 181 points, or 0.6%. S&P 500 futures ticked up 0.8%, and Nasdaq 100 futures rose 0.7%.
Johnson & Johnson and Hasbro are slated to report quarterly results later in the morning, with Netflix reporting after the market close. Later in the week, Tesla, United Airlines, American Airlines, Snap, Twitter and Verizon are among those scheduled to report.
IBM shares fell more than 4% in the premarket, after the tech company lowered its forecast for cash flow, even while reporting earnings that beat Wall Street’s earnings and revenue estimates.
So far, roughly 8% of S&P 500 companies have reported calendar second-quarter earnings. Of those companies, about two-thirds have beaten analyst expectations, FactSet data shows.
“When we think about earnings and we think about where stocks are now, we think there’s upside simply because there may be overpricing of this recession that some people think is imminent or already upon us,” said Julian Emanuel, senior managing director at Evercore ISI, during Monday’s Fast Money on CNBC.
Dow reversal
On Monday, the Dow shed more than 200 points to end the day in the red, reversing a morning rally fueled by solid earnings reports from Goldman Sachs and Bank of America. Oil broke above $100 a barrel, and bitcoin surged to the highest levels seen since mid-June.
Late in Monday’s session, stocks were dragged down on a Bloomberg report that Apple would slow hiring and spending on growth next year to prepare for a potential economic downturn. Shares of the iPhone maker ended the day about 2.1% lower.
The news came as traders weigh the potential for a U.S. recession, especially as inflation remains at multidecade highs and the Federal Reserve raises rates to curb said inflationary pressures.
