Traders
on
the
floor
of
the
New
York
Stock
Exchange
on
Aug.
4,
2022.
Source:
NYSE
Stock
futures
slipped
in
overnight
trading
Monday
as
investors
awaited
key
corporate
earnings
and
the
beginning
of
the
Federal
Reserve’s
policy
meeting.
Futures
on
the
Dow
Jones
Industrial
Average
dipped
82
points,
or
0.2%.
S&P
500
futures
slid
nearly
0.3%,
and
Nasdaq
100
futures
fell
0.4%.
In
extended
trading,
CrowdStrike
shares
fell
more
than
5%.
CNBC
reported
that
Delta
Air
Lines
hired
attorney
David
Boies
to
seek
damages
from
CrowdStrike
and
Microsoft
after
an
outage
this
month
led
to
thousands
of
flight
cancellations.
Quarterly
results
from
Merck,
Pfizer,
PayPal,
Procter
&
Gamble and
JetBlue
before
the
bell
Tuesday
could
dictate
market
sentiment
during
the
session.
Investors
will
also
watch
closely
for
numbers
from
Microsoft,
Advanced
Micro
Devices
and
Starbucks
after
the
closing
bell.
So
far,
more
than
40%
of
the
S&P
500
companies
have
reported
their
results
with
79%
posting
earnings
that
exceeded
Wall
Street
expectations,
according
to
LSEG.
That
compares
to
a
five-year
average
earnings
beat
rate
of
77%.
“Both
2024
and
2025
consensus
EPS
are
holding
up,
with
2024
EPS
tracking
a
typical
non-recessionary
year
revision
trend.
This
suggests
that
analysts
are
relatively
comfortable
with
their
estimates,”
Savita
Subramanian,
Bank
of
America’s
head
of
U.S.
equity
and
quantitative
strategy,
said
in
a
note.
“Corporate
commentaries
are
also
relatively
sanguine.”
The
Fed’s
two-day
policy
meeting
is
set
to
begin
Tuesday
where
central
bank
Chief
Jerome
Powell
could
signal
the
timing
and
number
of
rate
cuts
expected
in
the
next
few
months.
The
Fed
previously
projected
only
one
rate
cut
for
the
remainder
of
2024,
and
traders
have
priced
in
a
100%
chance
for
a
September
rate
reduction,
according
to
the
CME
FedWatch
Tool.
“Inflation
is
trending
lower,
supporting
Federal
Reserve
rate
cuts,”
said
Seema
Shah,
chief
global
strategist
at
Principal
Asset
Management.
“This,
coupled
with
a
still
robust
economic
outlook
and
strong
corporate earnings,
should
bolster
risk
assets
and
lead
to
a
broadening
of
returns
away
from
just
technology.”
On
Tuesday,
traders
will
be
watching
for
job
openings
data
for
the
month
of
June.
Economists
polled
by
Dow
Jones
are
calling
for
8.1
million
job
openings,
the
same
as
in
May.
Consumer
confidence
for
July
is
also
slated
for
release.
