U.S. stock futures rose slightly on Tuesday morning 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 added 61 points, or 0.19%. S&P 500 and Nasdaq 100 futures climbed 0.22% and 0.23%, respectively.
Novavax slumped 32% in extended trading after slashing full-year revenue guidance because of poor demand for its Covid vaccines.
Upstart declined 10% 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.