Stock futures slipped on Monday morning ahead of a highly busy week of earnings reports of big tech companies.
Dow Jones Industrial Average futures were 86 points down after falling by over 200 points earlier in the overnight session. Nasdaq 100 and S&P 500 both also traded in negative territory.
One of the enormous weeks of earnings reports is on the card, as Tesla is kicking it off after the closing bell. Last week, CEO Elon Musk expressed that the automaker will be starting to accept bitcoin for vehicle purchases again.
Big tech companies Alphabet, Apple, and Microsoft are also all set to report on Tuesday, while Amazon, Facebook, and Google, Facebook will report later in the week.
The second-quarter reporting has been stronger than earlier expectations, supporting equities as they climb back into record-high territory.
Craig Johnson, Chief Market Technician at Piper Sandler, said, “U.S. equities remain resilient as they continue to climb the wall of worry into record-high territory. An impressive start to earnings season has kept the buy the dip sentiment alive and offset concerns over peak growth and rising new cases of coronavirus.”
David Kostin, Goldman Sachs’ head of U.S. equity strategy, said in a note, “Investors are concerned about the impact on economic growth from the Delta variant, but the new strain should not pose a major market risk. Vaccinations, equity demand from households and corporations, and attractive relative valuations will support equity inflows and prices.”