Dow Futures Remain Without Direction, Focus On Earnings
During the Monday trading session, Dow Futures remained unchanged while the major US indices made some upside after earning results.
If we look at all the major future indices, such as Nasdaq 100, S&P 500, and Dow Jones Futures, the trading range was within 0.1%.
A significant movement during the trading session was the ZIONS (Zions Bancorporation) which fell by 2.% The company's EPS for the 4th quarter was released. The market was expecting an EPS of $1.65, while the actual value was $1.84. Similarly, the expected revenue for ZIONS was $873 million, while the market was expecting $856.83 million.
US Data Ahead (PMI, Fed Redbook, & Manufacturing)
For the next trading session, the investor's attention will remain towards the services PMI, Manufacturing, Fed Redbook, and other economic releases.
But for the US securities, the main focus of investors will be towards the earning releases of some major companies. For example, we have the upcoming earning report of Microsoft (MSFT), Texas Instruments Incorporated (TXN), and Johnson & Johnson (JNJ). In addition, the earning report of Verizon Communication (VZ) is also on the line, which will decide the next direction of the US indices.
Most of these companies have an international presence and fall in the blue chips category. So on that front, it seems that these earning reports will have a major effect on deciding the next direction for these indices.
In addition, these stocks will also pick cues from their respective earning reports. As a general rule of thumb, lower earnings will be regarded as negative, while average or better-than-expected earnings will be deemed as positive.
For now, the future indices remain unchanged, while the spot indices are a little positive ahead of the earnings report. For the most part, the earnings of tech companies may be on the low side, and everyone is expecting that. But even for non-tech companies, the year 2022 was a difficult one without any doubt.