U.S. stocks opened marginally lower on Monday, consolidating after last week’s record levels. This comes ahead of a busy week for corporate earnings results.
This week, the earnings season kicks into top gear. That is only with over 70 S&P 500 companies reporting, including 10 Dow stocks.
The Dow Futures contract fell 75 points, or 0.2% at 7:05 AM ET (1205 GMT). S&P 500 Futures traded 8 points, or 0.2%, lower, while the Nasdaq 100 Futures slid 20 points, or 0.2%.
For last week, Wall Street registered another strong week, as the S&P 500 and Dow Jones Industrial Average closed at record highs on Friday. They were benefiting from earnings topping estimates and strong economic data.
Last week, the S&P and Dow each gained around 1.4% for their fourth straight week of gains. Moreover, the Nasdaq Composite posted its third positive week in a row.
Corporate Earnings Season
From banking, the corporate earnings season’s focus turns to the tech sector. Netflix is due to report its latest financial results after the closing bell on Tuesday.
Also due to report earnings is one-time tech bellwether IBM after the close on Monday. Focus will also be on Tesla, particularly its self-driving software. One of its cars was involved in a fatal crash over the weekend.
On pre market Monday, the Peloton stock retreated after a warning from the safety regulators in the U.S. They warned people to stop using the company’s Tread+ treadmill “immediately” if they have children or pets in the home.
The safety regulators cited 39 incidents including one death. Peloton, however, called the warning as “misleading and inaccurate.”
Coca-Cola has also just released strong Q1 numbers, with revenues and earnings beating the markets’ expectations. The soft drinks company, however, declined to raise guidance, citing continued uncertainty surrounding the coronavirus pandemic.
On the vaccine front, the U.S. vaccination rollout has reached a milestone. Half the adult population now has had at least one shot. This comes as the World Health Organization (WHO) warned that more people worldwide were diagnosed with Covid-19 last week. That is compared to any other time since the pandemic began over a year ago.
The economic data slate is largely empty on Monday. However, the week includes a number of housing releases.
The weekly initial jobless claims are due on Thursday. Additionally, the IHS Markit’s composite flash U.S. Purchasing Managers’ Index for April, is due on Friday.