Traders
on
the
floor
of
the
New
York
Stock
Exchange
(NYSE)
in
New
York,
on
Tuesday,
Jan.
3,
2023.
Michael
Nagle
|
Bloomberg
|
Getty
Images
Stock
futures
were
flat
in
overnight
trading
following
a
losing
session
to
kick
off
the
holiday-shortened
trading
week.
Futures
tied
to
the
Dow
Jones
Industrial
Average
dropped
18
points,
or
0.05%.
S&P
500
futures
and
Nasdaq-100
futures
hovered
near
the
flatline.
Interactive
Brokers
lost
nearly
3%
in
extended
trading
after
posting
fourth
quarter
adjusted
earnings
that
fell
short
of
expectations.
Stocks
finished
lower
during
Tuesday’s
session
as
fourth-quarter
earnings
season
gained
steam
and
the
yield
on
the
10-year
Treasury
note
marched
back
above
4%
after
commentary
from
Federal
Reserve
Governor
Christopher
Waller
warned
easing
monetary
policy
may
come
slower
than
anticipated.
The
Dow
fell
231.86
points,
or
0.62%,
while
the
S&P
500
and
Nasdaq
Composite
slipped
0.37%
and
0.19%,
respectively.
So
far,
traders
are
pricing
in
a
roughly
65%
chance
that
the
Federal
Reserve
begins
cutting
rates
in
March
as
hopes
mount
for
a
pivot,
according
to
CME
Group’s
FedWatch
tool.
Fourth-quarter
earnings
gain
steam
this
week
and
could
serve
as
the
next
major
test
for
the
market
that
could
dictate
the
setup
for
2024.
Investors
have
already
pored
over
results
from
major
banks,
including
Goldman
Sachs,
Morgan
Stanley
and
Bank
of
America.
“This
reporting
period
may
lack
the
splashy
‘earnings
recession
over’
headlines
we
got
last
quarter,
but
it
takes
on
added
importance
because
it
sets
the
tone
for
2024,”
said
Jeffrey
Buchbinder,
chief
equity
strategist
at
LPL
Financial.
“After
2023
was
a
year
in
which
improving
valuations
delivered
strong
gains,
this
year,
earnings
will
likely
have
to
do
the
heavy
lifting.”
Wall
Street
awaits
December
retail
sales
due
out
Wednesday.
The
findings
could
offer
further
insight
into
the
health
of
the
consumer
or
contribute
to
growth
concerns
should
spending
ease.
Economists
polled
by
Dow
Jones
are
expecting
retail
sales
to
rise
0.4%
in
December,
up
slightly
from
0.3%
in
November.
Earnings
season
carries
on
Wednesday
with
results
from
Charles
Schwab,
U.S.
Bancorp
and
Prologis.
The
Federal
Reserve’s
beige
book
and
business
inventories
for
November
are
also
slated
for
Wednesday,
along
with
remarks
from
New
York
Federal
Reserve
Bank
President
and
CEO
John
Williams.
