Before a busy earnings week, U.S. stock futures opened lower. Dow Jones Industrial Average futures dropped by 94 points or 0.2%, S&P 500 futures fell by 0.2%, and Nasdaq 100 futures decreased by 0.3%. Investors are anticipating the busiest period of the first-quarter earnings season, with over 180 S&P 500 companies set to report. Major companies like Amazon (AMZN), Apple (AAPL, Financial), Meta Platforms, and Microsoft will release their quarterly reports. Other significant firms like Visa, Coca-Cola, Eli Lilly, and Berkshire Hathaway are also on the schedule.
According to FactSet, this quarter's earnings have been relatively positive, with 73% of companies surpassing analysts' expectations, though this is below the five-year average of 77%. Despite this, Wall Street continues to lower expectations for the second quarter and the full year. The week will also conclude the month's final trading week, with markets experiencing volatility following former President Donald Trump's comprehensive tariff plan announcement. The uncertainty surrounding these evolving tariff policies has intensified market fluctuations.
As of April, the S&P 500 has fallen by 1.5%, the Dow Jones Industrial Average is expected to drop by 4.5%, while the Nasdaq Composite has risen by 0.5%. The S&P 500 briefly entered a bear market on April 7 but has since recovered slightly, failing to break key resistance levels. LPL Financial's Chief Technical Strategist, Adam Turnquist, noted that although it may be premature to declare a bottom for underperforming beta, recent rebounds from key support levels suggest investors should remain vigilant for a potential shift towards risk-appetite leadership.
