U.S. stock futures fell Monday as investors awaited more earnings and an important speech from Federal Reserve Chairman Jerome Powell.
Investors were also taking some profits after the stock market’s hot start to the year. The S&P 500 is up more than 7% for 2023. The Nasdaq Composite is up the last five weeks in a row.
Dow Jones Industrial average futures lost 240 points, or 0.7%. S&P 500 futures were lower by 0.9%, and Nasdaq-100 futures slid 1.1%.
Karl Chalupa, CEO of Gamma Investment Consulting, said earnings could worsen further as the economy slows later this year and noted that no recovery from a major bear market low has occurred in the last 60 years when stocks were not at least fairly valued.
“On average, new bull markets launched when stocks were 25% undervalued,” he said. “At current valuation, the S&P 500 would need to fall below 3,500 just to reach fair value; a decline to 25% undervaluation would see the S&P 500 fall near to its Covid-low of 2,200.”
Disney, Chipotle, Dupont and PepsiCo are among the major companies reporting earnings this week. We are about halfway through fourth-quarter earnings season for the S&P 500 and the results have not been great. Profits for S&P 500 companies are on pace to be 2.7% lower for the fourth quarter, according to Refinitiv. Tyson Foods and Cummins report on Monday, but the major reports pick up later in the week.
This report’s information was first seen on CNBC; to read more, click this link.
You must be logged in to post a comment.