Stock futures flat after Dow notches best month since January

Traders work on the floor of the New York Stock Exchange.

NYSE

U.S. stock futures were flat in overnight trade on Sunday, with the Dow Jones industrial average posting its best month since January after major averages posted gains for April.

Dow futures traded flat, while S&P 500 and Nasdaq-100 futures fell 0.05% and 0.07%, respectively.

The stock is coming off a successful week and month. On Friday, the blue-chip index added 272 points, or 0.8%, while the S&P 500 rose 0.83%. The Nasdaq Composite advanced 0.69% as Big Tech earnings took center stage.

For the month, the Dow gained 2.5% for its best monthly stretch since January, while the benchmark index gained 1.5%. The tech-heavy index posted marginal gains.

Last week’s market debate was dominated by earnings reports from major tech companies, fueling the narrative that earnings are better than feared despite many widespread macroeconomic concerns.

Year-to-date, more than half of S&P 500 companies have reported earnings that beat earnings and sales expectations, 79% and about 72%, respectively. Earnings are now on track to fall 3.7% in the period, according to FactSet, a smaller decline than the 6.7% decline predicted on March 31.

“There was definitely a positive surprise in the big tech revenue,” said Jan Szilagyi, CEO of Toggle AI. “There was a certain jitteriness in the earnings season,” as expectations called for relative weakness.

Reports from several of these tech giants helped boost some market confidence, he added.

Elsewhere, regulators have called on banks to submit a final offer for troubled lender First Republic, under pressure from a deposit flight in the wake of Silicon Valley Bank’s collapse, CNBC reported over the weekend. JP Morgan Chase and PNC are likely to participate in the auction.

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After the bank said last week that deposits fell more than 40% in the first quarter, it triggered further declines in the already struggling stock. Shares are down 97% since the start of the year.

In other news, investors are eagerly awaiting the Federal Reserve’s latest interest rate hike decision, which is expected to come out on Wednesday at the conclusion of the central bank’s policy meeting. As of Sunday evening, about 79% of traders expect a 25 basis point rate hike. CME Group’s FedWatch Tool. Wall Street will be closely watching Fed Chairman Jerome Powell’s comments, which provide clues on the Fed’s policy path forward.

Monday kicks off another busy week for earnings, with results from Norwegian Cruise Line and MGM Resorts. Reports from Pfizer, Starbucks Advanced Micro Devices and CVS Health are due later in the week.

On the economic front, Wall Street awaits Monday’s ISM manufacturing data, construction spending and the S&P Global Manufacturing PMI. April’s nonfarm payrolls report is due Friday.

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