Stock Futures Waver Ahead of Tech Earnings

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VMware, Dell Technologies and Alibaba to post results on Thursday

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Shares have fluctuated this week, fluctuating between daily gains and losses as investors consider the Federal Reserve’s next monetary tightening to tackle inflation and how much they could weigh on growth and markets. . Minutes released by the Fed on Wednesday showed policymakers had agreed to a half-percentage hike in June and July, in line with previous communications.

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“To some extent, markets have been reassured that the Fed is not going to tighten more aggressively than expected. But market sentiment remains tense,” said Luke Phillips, head of investment at SYZ Private Banking. There is uncertainty as to what will happen if inflation remains high.”

The yield on the benchmark 10-year Treasury note fell to 2.727% from 2.746% on Wednesday, falling for the third day in a row. Yields fall when prices rise.

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Investors await second readings of US GDP in the first quarter and weekly jobless claims, both of which are set to go out at 8:30 a.m. ET. The first GDP release showed a 1.4% contraction, the first time since the pandemic.

“Economic data has recently come in weaker than expected, we see tightening in the economy. Shaniel Ramji, a multiasset fund manager at Pickett Asset Management, said that the market is still thinking about how severe the growth slowdown is.

Chinese tech giants Alibaba and Baidu are among the companies that posted earnings Thursday morning.,

Retailer Macy’s,

Dollar General and Dollar Tree and medical-device maker Medtronic,



upside down beauty,

Reports from Dell Technologies and Gap are expected after the market closes.

“We are focused on earnings and profitability. A lot of stagnant companies are reporting lower guidance,” Mr. Ramji said. “Even the tech sector is not untouched by margin pressure, especially from input costs like wages.”

In premarket trading, Nvidia tumbled 6% despite posting record revenue as its sales outlook for the current quarter fell below Wall Street’s estimates. Retailer Williams-Sonoma jumped 10% after posting gains that beat analysts’ expectations.

Overseas, the pan-continental stokes Europe 600 was up 0.2%. Shares of British telecommunications firm BT Group fell 4% after it said the UK government would investigate Netherlands-based rival Altice’s increased stake in the company.

In Asia, key benchmarks were mixed. The Shanghai Composite Index rose 0.3% while Hong Kong’s Hang Seng fell 1%. Japan’s Nikkei 225 fell 0.3%.

South Korea’s central bank on Thursday raised a key policy rate to 1.75% and indicated it would further tighten policy to continue the fight against high inflation.

In commodities, global oil benchmark Brent crude was trading 0.2% higher at $111.34 a barrel.

Write to Anna Hirtenstein at [email protected]

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