Stock futures edge lower after posting gains on Monday
U.S. equity futures were slightly lower on Tuesday morning after all three major averages gained during the daily trading session.
Dow Jones Industrial Average futures were flat. On Monday, the 30-stock index closed above its 200-day moving average for the first time since late April. S&P 500 and Nasdaq 100 futures both fell 0.12%.
ZipRecruiter shares fell more than 5% in after-hours trading as the company lowered its earnings outlook. Compass shares lost nearly 13% after the real estate broker missed quarterly revenue expectations and cut its outlook.
At the start of regular trading on Monday, energy and financials initially dragged markets lower on weak economic reports out of China and news that the country’s central bank had unexpectedly cut interest rates. Later in the day, markets rebounded and turned positive as consumer staples, communication services and consumer discretionary stocks rebounded.
Still, some see the recent gains as a bear market rally instead of the start of a new bull cycle.
“I think people aren’t sensitive enough to this economic downturn and what it’s going to mean for corporate earnings and profit margins,” Peter Boockvar, chief investment officer at Bleakley Advisory Group, said on “Fast Money” from CNBC.
Investors have more earnings releases to look forward to in the coming week as major retailers are set to report. Home Depot and Walmart are expected to report results before the bell on Tuesday. Target and Lowe’s will release their quarterly results on Wednesday.
This week, investors will also be watching the minutes of the Federal Reserve’s July meeting, which could provide further clues as to how the central bank will raise rates to tame inflation going forward.