Stock Futures Rise Slightly as Wall Street Awaits More Earnings, Inflation Data

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U.S. stock futures rose slightly on Monday night after Wall Street weighed the outlook for chip stocks, and looked ahead to more earnings results and inflation data that will determine the pace of future interest rate hikes.

Dow Jones Industrial Average futures rose by 44 points, or 0.13%. S&P 500 and Nasdaq 100 futures climbed 0.14% and 0.13%, respectively.

Novavax slumped 32% in extended trading after slashing full-year revenue guidance because of poor demand for its Covid vaccines.

Upstart declined 7% in extended trading after the consumer lending company reported second quarter results that missed both profit and revenue expectations.

During Monday’s regular trading, the S&P 500 slipped 0.12%. The Nasdaq Composite ticked down 0.10%. The Dow gained 29.07 points to close 0.09% higher.

Traders deliberated the implications of weaker-than-expected revenue from Nvidia on other semiconductor companies. They also considered whether the major averages will once again challenge June lows after their recent gains; the S&P 500 is coming off its third consecutive positive week.

“I think a retest is likely and investors need to be careful about buying in here,” Morgan Stanley Wealth Management’s Jim Lacamp said Monday on CNBC’s “Closing Bell.”

“You should use a rally like this to sell some stuff that you’re trying to get rid of — you know, you don’t want the cheese anymore, you want out of the trap.”

On the economic front, investors are awaiting the latest reading of the July consumer price index, due Wednesday, to find some clarity on the path of interest rate hikes from the Federal Reserve as it works to stamp out inflation, or at least slow it.

Investors also await another batch of earnings on Tuesday. Workhorse, Capri Holdings and Ralph Lauren are set to report quarterly results before the bell. Coinbase, Spirit Airlines, Roblox, Sweetgreen and EVgo will report after the market closes.

Novavax shares plunge

Shares of Novavax plummeted 32% in after hours trading after the biotech company cut its full-year revenue guidance roughly in half because of poor demand for its Covid vaccines.

Novavax said it expects to generate $2 billion to $2.3 billion in revenue in 2022, compared to previous guidance of $4 billion to $5 billion in revenue for the year.

— Sarah Min

Stock futures tick higher after Monday’s mixed session

Stock futures rose slightly Monday night after the S&P 500 and Nasdaq posted slight losses in regular trading.

Futures tied to the Dow Jones Industrial Average traded 40 points higher, or 0.1%. S&P 500 and Nasdaq 100 futures advanced 0.1% each.

Fred Imbert

Better-than-expected earnings results

The major averages have rallied this earnings season on the back of better-than-expected results. Of the 439 companies that have reported results through Monday, about 75.3% have beat expectations, according to FactSet.

— Sarah Min

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