US pre-open: Stocks seen weaker after winning streak
By Michele Maatouk
Date: Tuesday 01 Aug 2023
(Sharecast News) - US stock futures pointed to a weaker open on Wall Street on Tuesday as investors paused for breath after a five-month winning streak.
At 1035 BST, Dow Jones Industrial Average and S&P 500 futures were down 0.3%, while Nasdaq futures were 0.4% lower.
Joshua Mahony, chief market analyst at Scope Markets, said: "US markets are pointing lower, as we enter August off the back of a fifth consecutive monthly gain for the S&P 500. Overnight data out of China brought concern for markets as the Caixin manufacturing PMI slumped into contraction territory, posting the joint lowest figure of 2023 thus far. The central bank theme continued thanks to the RBA, with the Australian dollar losing ground after a surprise decision to hold rates in the face of falling inflation.
"Today sees the focus turn to the US employment situation, with the latest JOLTS job openings data kicking off a series of data points that resolve with Friday's jobs report. Thus far the jobs market has proven to be remarkably resilient in the US, although job openings have been steadily declining since the May 2022 peak."
On the corporate front, earnings are due from Merck, Pfizer, AMD, Caterpillar, Starbucks and Uber.
"A notable outperformance for S&P 500 energy firms of late does highlight the benefit of entering an earnings report with low expectations," said Mahony. "As such, forecasts for EPS declines across Merck, Pfizer, Caterpillar, and AMD could provide a base to outperform."
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