US stock futures hovered near the breakeven point early Monday as Wall Street investors waited to see how earnings pan out with the busiest week of the reporting season ahead as five Dow Jones Industrial Average components and approximately a third of the S&P 500 index companies issuing results.
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The main focus will be on Alphabet, the parent of Google, which reports after the closing bell on Monday.
Before the open Monday, Restaurant Brands reported weaker-than-expected earnings after a drop in Tim Hortons sales, sending its shares down 5.2 percent in pre-market trade. Spotify posted a bigger-than-forecast loss, but its stock rose 3.4 percent as the company also said it reached 100 million subscribers for its premium service.
Earnings reports pushed the S&P 500 and Nasdaq Composite indexes to record closing highs last week.
U.S. consumer spending recovered in March, the Commerce Department reported early Monday, while the Federal Reserve’s preferred underlying inflation gauge slipped to a one-year low.
Consumer spending rose 0.9 percent for the month, up from a gain of only 0.1 percent in February. Personal income rose 0.1 percent in March, less than forecast.
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The Federal Reserve meets this week but with inflation below 2.0 percent policy makers on Wednesday are expected to hold interest rates steady.
Investors are also watching for developments in trade talks between the U.S. and China. U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are expected to meet Chinese Vice Premier Liu He on Tuesday.
