(CercleFinance.com) – Wall Street is expected to open lower on Tuesday morning, as investors seem to want to remain on the defensive while awaiting the wave of results from the technology giants, expected in the coming days.
Half an hour before the opening, the futures contracts on the major New York indices fell an average of 0.6%, announcing a start to the session in the red.
Alphabet – the parent company of Google – and Microsoft will reveal their accounts tonight, followed by Meta tomorrow, then by Apple and Amazon on Thursday evening.
The US stock market owes most of its gains in recent years to the dynamism of its technology stocks, which have enabled the Nasdaq to multiply its value by nearly six in less than ten years.
But investors have tended to shy away from technology stocks in recent months, particularly in the face of rising interest rates that are making their financing more expensive.
So far, the earnings season has held some pleasant surprises, with 81% of companies having published their accounts exceeding expectations in terms of turnover.
This average is in line with the trend of the past five years, which is around 77%.
As for companies having done better than expected in terms of their profits, their proportion currently stands at 69%, a figure here again in line with the trends of recent years.
It remains to be seen whether the major technology groups will be able to sustain this pace.
“At this stage, we are expecting solid figures from the mainstays of Microsoft and Apple, which would be much needed good news for the sector in this period of crisis,” said Dan Ives, the star analyst at Wedbush Securities.
In M&A news, Twitter announced last night that it had reached an agreement to sell itself to Elon Musk, who will offer a 38% premium to take control of the company in a deal estimated at $44 billion.
As for the indicators, orders for durable goods rebounded by 0.8% in March following a contraction of 1.7% in February, a figure however below the expectations of economists, who were aiming for a rebound of between 1 .1% and 1.3% last month.
Investors will still have to analyze the Conference Board’s consumer confidence index as well as new home sales during the morning.
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