US index futures continued to fall ahead of major company reports, which investors will watch under the influence of inflation and consumer spending as the Federal Reserve intensifies policy tightening.
Contracts on the S&P 500 and Nasdaq 100 fell about 0.5% after surging on Monday. Twitter Inc. was flat in the premarket after rising on news that Elon Musk had struck a deal to buy the social media platform.
US corporate earnings provide some consolation for equity bulls, with about 80% of firms beating earnings expectations. United Parcel Service Inc., General Electric Co. and Pepsico Inc. reported earnings ahead of analysts' estimates on Tuesday, while Microsoft Corp, Google Parent Alphabet Inc. and Visa Inc. are still ahead.
"This will be the busiest week of reports for the first quarter earnings season," Art Hogan, chief market strategist at National Securities, said in a note. "This should provide investors an opportunity to shift their focus from the macro headwinds like inflation, the Fed, China lockdowns, and the war in Ukraine, and allow them to disseminate corporate results to ascertain if appropriate valuations have been ascribed in the wake of the markets' April drawdown."
Stocks in Europe rose as China's promise of increased monetary policy support for its Covid-hit economy lifted sentiment, while traders also watched earnings reports from some of the region's biggest companies.
Stoxx50 Europe rebounded from a six-week low, with Novartis AG and UBS Group AG among the index's biggest movers following positive first-quarter reports. Key indicators moved higher, supported by earnings from paper producer UPM-Kymmene Oyj and ball bearing manufacturer SKF AB. However, the overall trend for the indices is downward in the medium term.
The Russian stock market today shows its first day of growth after a 15-day decline:
- Tech earnings include Alphabet, Meta Platforms, Amazon, Apple
- EIA Oil Stocks Report, Wednesday
- Australian Consumer Price Index, Wednesday
- Bank of Japan monetary policy decision, Thursday
- US Q1 GDP, weekly jobless claims, Thursday
- ECB publishes its economic bulletin on Thursday
