Futures point to flat opening on Wall Street

U.S. stock index futures pointed to a flat open for Wall Street on Tuesday, as focus shifts to the first-quarter earnings season that kicks off later this week.

Global stocks were on edge after the United States threatened to slap tariffs on hundreds of European goods on Monday as retaliation for subsidies given to Airbus, while expectations of another cut to the IMF’s global growth forecasts added to worries.

The European Union has begun preparations to retaliate over Boeing Co subsidies, an EU official said.

Boeing’s shares were down 0.2% in premarket trading.

Earnings begin in earnest, with Delta Air Lines Inc reporting on Wednesday followed by big U.S. lenders later this week.

Investors, however, are bracing for the first quarter of contracting earnings since 2016. January-March profits for S&P 500 companies are expected to fall 2.3% from last year, according to Refinitiv data.

At 7:15 a.m. ET, Dow e-minis were down 6 points, or 0.02%. S&P 500 e-minis were down 2 points, or 0.07% and Nasdaq 100 e-minis were down 7.75 points, or 0.1%.

Among other early movers, Walt Disney Co inched up 0.9% after Cowen and Co raised its rating on the company to “outperform”, citing its strong pipeline of products.

United States Steel Corp fell 3.7% after Credit Suisse downgraded the stock to “underperform”.

Reuters

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell