US pre-open: Stocks lower as investors await Q3 earnings later in the week
By Iain Gilbert
Date: Monday 11 Oct 2021
(Sharecast News) - Wall Street futures were in the red ahead of the bell on Monday as market participants geared up for the start of third-quarter earnings season later in the week.
As of 1225 BST, Dow Jones futures were down 0.22%, while S&P 500 and Nasdaq-100 futures were 0.37% and 0.60% weaker, respectively.
The Dow closed just 8.69 points lower on Friday as major indices managed to eke out gains for the week despite a poor jobs report.
Monday's principal focus will be surging energy prices, with West Texas Intermediate crude jumping more than 2% to over $81.0 per barrel and the likes of Occidental Petroleum, Diamondback Energy and Chevron all trading higher in pre-market.
Also weighing on sentiment was a report from Goldman Sachs that saw the bank cut its economic growth forecasts for 2022 to 4% from 4.4% and lower its 2021 estimate to 5.6% from 5.7%, pointing to the expiration of fiscal support from Congress and a slower-than-expected recovery in consumer spending as its reasoning.
Looking ahead, third-quarter earnings season will kick off on Wednesday, with Delta Air Lines, BlackRock and JP Morgan Chase all reporting earnings.
Swissquote's Ipek Ozkardeskaya said: "Regarding the earnings, we had a rough quarter with global shortages, slow logistics, bottlenecks, empty shelves, energy crunch, and high energy prices, but the expectation is still a 28.3% profit growth for the S&P 500 companies; bank and energy company earnings could boost the overall performance to cover up for the others.
"An increase in profits would be the fifth consecutive increase and the longest winning streak in more than 15 years, which is not bad at all for a world in crisis!"
No major data points or corporate earnings were slated for release on Monday.
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