Dow futures fall 170 points to start week on key inflation data, earnings ahead

Traders on the floor of the New York Stock Exchange.

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Stock futures were lower on Sunday night as markets exited a tumultuous week and traders looked ahead to key reports next week that could provide insights into the health of the economy.

Futures are linked Dow Jones Industrial Average It fell 0.6% to 29,175 points. S&P 500 Futures were down 0.7% at 3,626.25, while Nasdaq 100 futures were down 0.8% at 11,014.25.

Market watchers generally view the coming week as the start of the earnings season, with the world’s four biggest banks – JP Morgan, Wells Fargo, Morgan Stanley And City – Friday report. PepsiCo, Delta And Dominoes Companies reporting next week include

Inflation will also take center stage as new monthly consumer price index data arrives on Thursday morning.

This will follow a week of whiplash for market participants. The first half brought a relief rally that sent the S&P 500 up more than 5% in its biggest two-day gain since 2020.

But economists say jobs are data Keep the Federal Reserve on track to continue raising interest rates And OPEC+’s decision to cut oil supply That spooked investors, diluting gains later in the week. As the day’s trading ended Friday, the S&P was up 1.5% from where it started the week. The Dow and Nasdaq rose 1.5% and 0.7%, respectively.

Still, the Dow, S&P 500 and Nasdaq It was the first positive week in four. All are down significantly so far in 2022, however, with the Nasdaq less than 1% off its 52-week low.

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Meanwhile, the 2-year Treasury yield Up 6 basis points, it ended at 4.316%. One basis point is equal to 0.01%.

“The stock market’s direction is likely to be bearish because the economy and corporate profits will either decline meaningfully or the Fed will have to raise rates even higher and keep them high for longer,” said chief investor Chris Zaccarelli. Friday is an official at the Independent Counsel Alliance.

“Under the conditions we’re operating in, we believe it’s prudent to start preparing for a recession,” he added. “Talk of a superficial recession, now the story-to-jour, strikes us like last year’s ‘inflation is temporary’ story.”

Last week brought heightened concerns that corporate earnings could show the ugly side of a rising dollar. Levi Strauss It was the latest to cut guidance due to declining international sales.

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