As investors get ready for a flood of brand-new corporate profits, U.S. stock futures dipped slightly lower on Monday, giving up some of the solid gains made the previous week. The Dow futures contract was down 80 points, or 0.2%, by 06:45 ET (10:45 GMT), while the S&P 500 futures were down 6 points, or 0.1%, and the Nasdaq 100 futures were down 7 points, or 0.1%. The key Wall Street indices had a profitable week last week thanks in part to inflation figures that were less than anticipated, supporting the idea that the Federal Reserve’s rate-hiking cycle will peak after its final rise next week. The tech-heavy Nasdaq Composite increased 3.3%, the broad-based S&P 500 rose 2.4%, and the blue-chip Dow Jones Industrial Average rose 2.3%, marking its greatest weekly gain since March.
On Monday, only the NY Empire State Manufacturing Index is planned for release, leaving the data slate largely barren. However, the week’s statistics also contain information on existing house sales, housing starts, and reports on construction permits, retail sales, and first unemployment claims in the United States. These figures, however, are unlikely to alter the perception that the Fed’s 25-basis-point increase later this month will probably be the final one for this cycle. Data from China that were released earlier on Monday revealed that the second-largest economy in the world’s growth was slowing considerably, raising more questions about the nation’s fledgling recovery from its COVID setback. China’s gross domestic product grew by 0.8% over the previous three months in the second quarter, a marked slowdown from the first quarter’s 2.2% rise.
This week, there will be reports from more banks, Tesla, and Netflix. Although competitor Citigroup’s (NYSE:C) profit fell by more than a third, favorable quarterly results from banking giants JPMorgan (NYSE:JPM) and Wells Fargo (NYSE:WFC) add to the positive mood from last week. This week, additional lenders like Bank of America (NYSE:BAC), Morgan Stanley (NYSE:MS), and Goldman Sachs (NYSE:GS) are scheduled to release their financial results. Following the demise of a number of local rivals earlier this year, which led to a crisis in the financial services sector, these data are expected to face intense examination. Several significant companies with earnings reports this week include United Airlines (NASDAQ:UAL), Netflix, and the Elon Musk-led electric vehicle company Tesla (NASDAQ:TSLA).
Cybertruck is finished by Tesla. After two years of delays, Tesla said on Sunday that it has finally built its first Cybertruck, placing the electric vehicle manufacturer in the public eye. The premarket price of Activision Blizzard (NASDAQ:ATVI) increased after Microsoft (NASDAQ:MSFT) disclosed that it had reached a deal with Sony (NYSE:SONY) to keep the well-known gaming franchise “Call of Duty” on PlayStation, potentially removing a major obstacle to its $69 billion acquisition of the video game company.
Crude is impacted by slow Chinese growth. Oil prices dropped on Monday as a result of worries about future demand from the world’s largest crude importer caused by China’s poor growth figures. Additionally, throughout the weekend, two of the three Libyan oil fields that had been shut down on Thursday—including the second-largest in the nation, Sharara—restarted producing. Given the ambiguity surrounding the West’s response, the market became even more volatile once it was announced that Russia had pulled out of the grain deal for the Black Sea region that the U.N. had mediated. The price of U.S. oil futures fell 1.4% to $74.25 a barrel by 06:45 ET, while the price of the Brent contract fell 1.4% to $78.73. Last week, both benchmarks saw advances for the third straight week, reaching their best levels since April. The price of gold futures also decreased by 0.1% to $1,962.35/oz, while the EUR/USD exchange rate increased by 0.1% to 1.1236.
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