Stock Futures Steady as Investors Await Economic Data and Tech Earnings
New York City, July 20, 2023 – Stock futures were relatively unchanged Sunday night as investors eagerly awaited a series of economic data releases and quarterly earnings reports from two major tech companies.
Futures linked to the Dow Jones Industrial Average slipped slightly by 2 points, or 0.01%. Meanwhile, S&P 500 futures and Nasdaq 100 futures experienced slight gains of 0.06% and 0.1% respectively.
The previous week ended on a positive note as stocks rebounded. The Dow Jones Industrial Average climbed 75.86 points, or 0.22%, closing at 34,576.59. The S&P 500 also saw a modest increase of 0.14% to snap a three-day losing streak, finishing at 4,457.49. The Nasdaq Composite eked out a marginal gain of 0.09%, settling at 13,761.53. However, despite this recovery, all three indexes posted losses for the week, marking the first negative week in three for the S&P and Nasdaq.
Investors are particularly interested in crucial inflation data scheduled for release in the upcoming week. Stronger-than-expected economic data released last week has renewed concerns that the Federal Reserve may increase interest rates more aggressively than previously anticipated. According to CME Group’s Fed Watch tool, traders are predicting a 40% chance of a rate hike in November, following an expected pause in September.
Yung-Yu Ma, Chief Investment Strategist at BMO Wealth Management, commented, “Overall, the market will be looking for direction amid recent choppiness and concern that the economy is set to slow down in the coming quarters,” in an interview with CNBC.
Wednesday and Thursday will bring the latest updates on the consumer price index and producer price index, respectively. Investors hope for relatively low readings, even though both indices are expected to rise due to energy cost pressures.
Ma added, “Both CPI and PPI inflation reports will highlight the importance of oil prices, which have reached the upper end of their one-year trading range. A break above $90/barrel for WTI would start to cause concerns for future price pressures in the economy.”
Further economic indicators expected this week include retail sales data on Thursday and the release of the University of Michigan’s Consumer Sentiment Survey on Friday. These reports will provide insights into the likely strength of consumer spending for the remainder of the year.
Alongside economic data, investors will also focus on earnings releases from two tech giants: Oracle on Monday and Adobe on Thursday. Additionally, Apple is set to hold its highly anticipated product event, called “Wonderlust,” on Tuesday, where the unveiling of the iPhone 15 is widely anticipated.
Apple experienced a decline last week, slipping below its 50-day moving average following reports of China’s plans to expand the ban on the use of iPhones in government agencies and state-owned companies. This raised concerns among investors about the potential impact on the company, as it remains the largest stock in the S&P 500.
As the new week begins, investors remain watchful for key economic data releases and tech earnings, which will likely influence market sentiment and direction in the coming days.