Stock index futures rose on Monday, and yields were slightly higher, as investors gear up for more earnings, with heavyweights such as Tesla (TSLA), Microsoft (MSFT), Alphabet (GOOGL) and Meta (META) set to report this week.
S&P 500 futures (SPX) +0.6%, Nasdaq 100 futures (NDX:IND) +0.7% and Dow futures (INDU) +0.4%.
The 10-year Treasury yield (US10Y) rose 3 basis points to 4.66%. The 2-year yield (US2Y) unchanged at 5.01%.
“In equity markets all eyes will be on earnings with a whopping 178 of the S&P 500 reporting including four of the Magnificent Seven,” said Deutsche Bank’s Jim Reid.
Tesla (TSLA) is expected to report after the bell on Tuesday, Meta (META) is scheduled for Wednesday post close, while Alphabet (GOOGL) and Microsoft (MSFT) are slated for Thursday.
Tesla (TSLA) also slid 2.41% in pre-market trade, after the company cut prices in the U.S. by $2K across its Model Y, S and X cars on Saturday, just over two weeks after the electric vehicle giant significantly missed expectations on Q1 deliveries.
The market is coming off a chaotic week. Friday’s session was dominated by a post-earnings slide in Netflix (NFLX) which pulled down the technology sector, and geopolitical tensions between Iran and Israel which kept investors on edge.
“Technology stocks were in the firing line at the end of a testing week, with some of the recent froth blown off after what has been a stellar rise for those stocks which have an AI slant,” said Richard Hunter from Interactive Investor.
“It’s a bit of a messy picture for markets at the moment with huge uncertainty around events in the Middle East, U.S. tech seeing its biggest sell-off for around 18 months, and with yields climbing as rate cuts get increasingly pushed out,” Reid added.
The economic calendar is light today, with the Chicago Fed National Activity for March expected before the bell.
Traders are also keely waiting for the key inflation report, PCE price index for March, which is due on Friday.
