Tech led US stocks lower before the bell on Monday as investors braced for a packed week of top-tier earnings that could drive or drag on a record-setting rally.
S&P 500 futures (ES=F) dropped roughly 0.3%, coming off a fresh all-time closing high and a sixth weekly win in a row. Dow Jones Industrial Average futures (YM=F) edged 0.2% lower, while contracts on the tech-heavy Nasdaq 100 (NQ=F) shed 0.5%.
Whether records keep rolling in rides in large part on whether corporate results beat high expectations. Earnings season ramps up this week with over 100 S&P 500 companies lined up to report. So far, 80% of third quarter updates from those on the benchmark have topped the mark.
Investors are on edge for Tesla’s (TSLA) report on Wednesday, after its robotaxi unveiling fell short of expectations. The EV maker is the second of the Magnificent Seven megacaps to report amid questions about Big Tech performance.
General Motors (GM), Coca-Cola (KO), American Airlines (AAL), and UPS (UPS) are among several other big hitters on the earnings docket this week.
Boeing (BA) faces a double-whammy on Wednesday, when it’s expected to release earnings at the same time workers vote on whether to accept a tentative deal agreed with the union to end a five-week strike. Shares in the planemaker rose over 3% in early Monday trading.
Meanwhile, oil prices recovered, rising about 2% alongside gains for Chinese stocks (000300.SS) as China’s stimulus push continued with a cut to key lending rates. Global benchmark Brent futures (BZ=F) traded near $74 a barrel, while West Texas Intermediate (CL=F) crude futures topped $70, with Israel’s next Iran move also in focus.