Dow futures drop 200 points, Microsoft tumbles after earnings

Traders on the floor of the NYSE, August 28. 4, 2022.

Source: NYSE

Stock futures fell in early trading on Wednesday as traders eyed the latest batch of corporate earnings.

Dow Jones Industrial Average futures fell 222 points, or 0.66%. Nasdaq-100 futures lost 1.3% and S&P 500 futures fell 0.8%.

Microsoft shares fell 2%. Initially, shares rose after the tech giant reported fiscal second-quarter earnings per share that beat analysts’ estimates. However, shares fell after the company offered a lackluster outlook on its earnings call.

Investors brace for stronger corporate earnings amid recession fears. So far, more than 70 S&P 500 companies have reported fourth-quarter results, and 65% of them posted stronger-than-expected results, according to Refinitiv.

“With the bulk of earnings still ahead of the market, whether the shift to growth signaled by recent rallies is warranted could be answered by upside earnings surprises and strong guidance,” said Quincy Krosby. , chief global strategist at LPL. Financial.

You’re hereBoeing, IBM and AT&T are among the companies expected to release numbers on Wednesday.

The moves followed a three-day winning streak for the blue-chip Dow. All three major averages are up at least 1% since the start of the week.

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