Traders on the floor of the NYSE, August 1, 2022.
US stock futures rose slightly Tuesday morning after Wall Street weighed the outlook for chip stocks and looked ahead to more earnings results and inflation data that will set the pace of future rate hikes.
The Dow Jones Industrial Average futures added 62 points, or 0.19%. S&P 500 and Nasdaq 100 futures rose 0.22% and 0.23%, respectively.
Novavax slumped 32% in comprehensive trade after lowering full-year revenue expectations due to poor demand for its Covid vaccines.
Upstart fell 10% in extended trading after the consumer lending company reported second-quarter results that missed both earnings and revenue expectations.
During Monday’s regular trading, the S&P 500 fell 0.12%. The Nasdaq Composite was down 0.10%. The Dow gained 29.07 points and closed 0.09% higher.
Traders debated the implications of Nvidia’s disappointing sales on other semiconductor companies. They also considered whether the big averages will once again challenge the June lows after their recent gains; the S&P 500 is entering its third consecutive positive week.
“I think a retest is likely and investors should be careful buying in here,” Morgan Stanley Wealth Management’s Jim Lacamp said on CNBC’s “Closing Bell” Monday.
“You should use a rally like this to sell some stuff you’re trying to get rid of — you know, you don’t want the cheese anymore, you want to get out of the trap.”
On the economic front, investors are waiting for the final reading of the consumer price index in July, expected Wednesday, to clarify the path of interest rate hikes from the Federal Reserve, which is trying to stamp out, or at least slow, inflation.
Investors are also waiting for another set of gains on Tuesday. Workhorse, Capri Holdings and Ralph Lauren will report quarterly results before the bell. Coinbase, Spirit Airlines, Roblox, Sweetgreen and EVgo will report after the market closes.