Futures dip ahead of Fed meeting, big tech earnings

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FILE PHOTO: A street sign for Wall Street is seen outside of the New York Stock Exchange (NYSE) in New York City
FILE PHOTO: A street sign for Wall Street is seen outside of the New York Stock Exchange (NYSE) in New York City, New York, U.S., June 28, 2021. REUTERS/Andrew Kelly/File Photo

July 27, 2021

By Ambar Warrick

(Reuters) – U.S. stock index futures fell on Tuesday ahead of earnings reports from the most valuable companies on Wall Street and in the run-up to the two-day Federal Reserve meeting.

More than one third of the S&P 500 is set to report quarterly results this week, led by Apple, Microsoft, Amazon and Google-parent Alphabet, the four largest U.S. companies by market value.

Apple, Alphabet and Microsoft, which were largely flat in premarket trade, are set to report earnings after the market closes, while Amazon will report results on Thursday.

Investors remained on edge, awaiting more signals from the central bank on when it intends to begin reining in its massive stimulus program. The two-day Fed meeting will begin later in the day.

U.S. S&P 500 E-minis were down 14.5 points, or 0.33%, at 06:14 am ET. Dow E-minis were down 158 points, or 0.45%, while Nasdaq 100 E-minis were down 20.5 points, or 0.14%.

Wall Street indexes had inched up to record closing highs on Monday, carrying over momentum from a strong batch of earnings last week.

Of the S&P 500 constituents, 124 companies have reported earnings so far and 88.7% of them have beaten estimates, according to Refinitiv data.

Electric-car maker Tesla Inc rose 2.3% in premarket trade after it posted a better-than-expected second-quarter profit on higher sales of its less-expensive vehicles.

U.S.-listed Chinese stocks extended their declines as fears over more regulations in the mainland persisted. Alibaba and Baidu lost about 3.6% and 4.9%, respectively.

(Reporting by Ambar Warrick in Bengaluru; Editing by Arun Koyyur)