Stock futures inch higher as investors await tech earnings: Live updates

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Traders work on the floor of the New York Stock Exchange (NYSE), July 26, 2023.

Brendan McDermid | Reuters

Stock futures rose slightly Monday night as investors focused on the upcoming slate of earnings reports from major tech companies.

Futures tied to the Dow Jones Industrial Average added 57 points, or 0.2%. S&P 500 futures and Nasdaq 100 futures also each climbed 0.2%.

The moves follow a mixed session on Wall Street as investors continued watching the U.S. 10-year Treasury yield, which crossed the closely followed 5% level for the first time since 2007 last week. Rising yields have raised concerns about the state of the broader economy and pressured the stock market in recent weeks.

"Equities are trending sideways to being in a retreat mode given persistent inflation and higher-for-longer interest rates," said Terry Sandven, chief equity strategist at U.S. Bank Asset Management. All the while, "the prospects for recession loom on the horizon."

The Dow and S&P 500 finished Monday's session down about 0.6% and 0.2%, respectively. But the technology-heavy Nasdaq Composite was able to finish up about 0.3%, as investors bought into the sector with major earnings reports on the horizon.

Spotify reports Tuesday before the bell, alongside General Motors and Coca-Cola. Alphabet and Microsoft are among companies posting results after the market closes.

Investors will also keep an eye on tech later in the week, with Meta reporting Wednesday and Amazon on Thursday. IBM and Intel are among the other well-known tech names offering quarterly results later in the week.

About 30% of S&P 500 companies are slated to report this week, the latest leg of an earnings season that has so far been better than Wall Street expected. About 17% of S&P 500 companies have already reported earnings, and three-quarters of them have posted earnings surpassing analysts' expectations, according to FactSet.

Elsewhere, traders will watch for economic data coming Tuesday morning about the services and manufacturing sectors.

The broader market is approaching an earnings growth inflection, according to Citi

Citi thinks the S&P 500 is on the cusp of an earnings growth inflection, as the market continues to be weighed down by longer-term concerns related to the broader economic environment.

"There is no doubt that 2024 recession risk remains a U.S. equity market overhang," analyst Scott Chronert said in a recent note. "Our view continues to emphasize that earnings risk may be less than typical relative to prior recessions. Further, recessions usually lead to interest rate relief. This can set up for valuation support."

Current estimates still point to flat growth expectations for the third quarter compared to the same period last year, Chronert said.

The analyst remains constructive on the "fundamental setup" for the S&P 500 headed into 2024, however, saying that even modest earnings beats will lift the market out of a mild earnings recession.

He noted that earnings per share growth in the broader market has been negative for three consecutive quarters, but said that only a modest level of upside surprise is needed to push third-quarter EPS growth into positive territory compared to the previous comparable quarter. If that happens, it would push third-quarter year-over-year growth to roughly 3% and fourth-quarter growth to near 10%, he said.

— Pia Singh

See the stocks moving in extended trading

These are some of the stocks making the biggest moves after hours:

Redfin — Shares jumped 12% after the real estate company announced that funds managed by Apollo Capital and affiliates have agreed to commit as much as $250 million through a loan.
Cadence Design Systems — The electronic system designer lost about 4% after delivering weak guidance for current quarter earnings per share.
KKR Real Estate Finance Trust — The real estate trust added 3.5% after distributable earnings per share notably exceeded expectations in the third quarter.

See the full list here.

— Alex Harring