U.S. stock index futures pointed to a softer start for Wall Street as the month of February kicked off, after the worst month since March 2020, with manufacturing data due Tuesday and more earnings reports from Exxon Mobil, Alphabet and General Motors.
How are stock-index futures trading?
- S&P 500 futures ES00, -0.19% fell 0.2% to 4,493
- Dow Jones Industrial Average futures YM00, -0.12% dropped 0.2% to 34,932
- Nasdaq-100 futures NQ00, -0.08% eased 0.1% to 14,889
On Monday, the Dow industrials DJIA, +1.17% finished 406.39 points, or 1.2%, higher at 35,131.86 and dropped 3.3% for January, the biggest monthly fall since November 2021. The S&P 500 SPX, +1.89% rose 1.9% to 4,515.55, logging a 5.3% monthly drop, the biggest since March 2020.
The Nasdaq Composite Index COMP, +3.41% slid 9% decline in January, also the biggest monthly drop since March 2020, and the worst January performance since 2008, according to Dow Jones Market Data. The index rallied 3.4% to 14,239.88 on Monday, though.
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What’s driving the markets?
Investors on Tuesday indicated some hesitancy to follow up Monday’s strong gains, which were a bright note after a dismal January performance for stocks, as investors fretted in part over worries about the prospects for higher U.S. interest rates. European markets gained on back of Wall Street’s rally, even amid Wall Street’s follow-through struggle. Chinese and some other Asian markets were closed for the Lunar New Year holiday.
“Investors continue to buy the dips almost everywhere this week, with market sentiment boosted by a strong earning season so far where most companies have beaten expectations,” said Pierre Veyret, technical analyst at ActivTrades, in a note to clients.
“Technically speaking, most indexes have registered solid rebounds over major support zones and are now challenging key resistance levels. If cleared, these resistances could open the doors to an extended rally, potentially driving prices up to new record highs on the short to midterm basis,” he said.
The yield on the 10-year Treasury note TMUBMUSD10Y, 1.760% fell 2 basis points to 1.756%, with oil prices softer CL.1, +0.09% and the ICE U.S. Dollar index DXY, -0.20% down 0.2%.
On the U.S. data front, investors will get the Institute for Supply Management’s manufacturing index for January, along with job openings and construction spending for December, all at 10 a.m. Eastern Time.
Tuesday also marks a big earnings reporting day, with Stanley Black & Decker SWK, +1.58%, United Parcel Service UPS, +2.00% and Exxon Mobil XOM, +0.90% due to announce results ahead of the open. Investors will get more big technology earnings after Tuesday’s close from Google-parent Alphabet GOOGL, +1.46%, along with PayPal PYPL, +5.15% and Advanced Micro Devices AMD, +8.56%, General Motors GM, +4.96% and Starbucks SBUX, +1.14% will also report.
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