MW: U.S. stocks set to slump as investors fret over quarterly results
NEW YORK (MarketWatch) — U.S. stock futures pointed to a weak opening on Wall Street Tuesday after two session of solid gains.
Analysts said investors reassessed their investments ahead of what’s feared to be a disappointing stretch for corporate quarterly results.
Futures for the Dow Jones Industrial Average YMM5, -0.42% pulled back 82 points, or 0.5%, to 17,780, while those for the S&P 500 ESM5, -0.43% fell 9.20 points, or 0.4%, to 2,066.40. Futures for the Nasdaq-100 NQM5, -0.30% fell 15.75 points, or 0.4%, to 4,356.75.
“I think there is always some jostling for position before the NFP [nonfarm payroll report],” said Wouter Sturkenboom, senior investment strategist at Russell Investments in London, in emailed comments.
Markets booked solid gains on Monday, which were spurred along by dovish comments from China’s central-bank chief and corporate-deal news. Tuesday also marks the end of the first quarter.
The S&P 500 SPX, +1.22% is set to end the first quarter up 1.3%, which would mark its ninth-straight winning quarter. For the month of March, the index is looking at a 0.9% loss. Among other highlights, the Nasdaq Composite Index COMP, +1.15% is set to log a 4.5% gain in the quarter, the longest quarterly winning streak in its history.
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Analysts noted the dollar was waking up from its slumber. The dollar EURUSD, -0.75% rose notably against the euro on Monday as investors waited for U.S. economic reports later in the week. That in turn was weighing on commodity prices.
“In general, U.S. equities are in a difficult position with too many headwinds in place, preventing a sustainable rally from developing,” added Sturkenboom.
Home prices and lots of Fedspeak: Data for Tuesday includes Case-Shiller home prices for February, due at 9 a.m. Eastern Time, while the Chicago-area purchasing managers index for March is due at 9:45 a.m. Eastern. At 10 a.m. Eastern, the report on consumer confidence for March is scheduled.
Three Fed speakers are on tap. Two are voting members on the Federal Open Market Committee: Richmond Fed Jeffrey Lacker he expects solid growth and rising inflation this year, and as a result, would urge the U.S. central bank to start raising interest rates relatively soon. Atlanta Fed President Dennis Lockhart will give welcoming remarks at the Atlanta Fed conference at 8:50 a.m. Eastern.
