Stock futures fall in overnight trading as Microsoft reverses earlier gains

Stock futures fall in overnight trading as Microsoft reverses earlier gains

Traders on the floor of the New York Stock Exchange, August 4, 2022.

Source: NYSE

Stock futures fell in overnight trading on Tuesday.

Dow Jones Industrial Average futures fell 106 points, the Nasdaq 100 futures lost 0.8% and S&P 500 futures fell 0.5%.

Microsoft shares fell about 1%, reversing earlier gains in after-hours trading. Initially, shares rose after the tech giant posted earnings per share in the fiscal second quarter that beat analyst estimates. However, shares fell after the company offered lackluster guidance in its earnings call.

Investors brace for more high-profile corporate profits amid recession fears. So far, more than 70 S&P 500 companies have reported fourth-quarter earnings, with 65% of them posting better-than-expected results, according to Refinitiv.

“With most earnings still ahead of the market, the question of whether the shift to growth signaled by recent rallies could be answered with upside earnings surprises and strong guidance,” said Quincy Krosby, chief global strategist at LPL. Financial.

teslaBoeing, IBM and AT&T are among the companies to release numbers on Wednesday.

The overnight action followed a three-day winning streak for the Dow Jones index. All three major averages are up at least 1% weekly year to date.

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