© Reuters. Traders work at the Carvana Co. trading booth on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., December 7, 2022. REUTERS/Brendan McDermid
(Reuters) – U.S. stock index futures were lower on Tuesday as corporate reports from leaders including 3M, Johnson & Johnson (NYSE:) and GE accelerated earnings season, while semiconductor shares fell after a rebound in the previous session.
In a week packed with high-profile earnings reports and key economic data, investors will now be looking to assess the impact of the Federal Reserve’s wave of rate hikes. The central bank is widely expected to raise rates by another quarter of a percentage point next week.
Industrial conglomerate 3M Co fell 2.5%, leading the declines among Dow components in premarket trading, after reporting a drop in quarterly profit.
General Energy (NYSE:) Co fell 2.6% on forecasting lower-than-expected adjusted profit for 2023.
Johnson & Johnson, however, rose 2.2% after the healthcare giant beat fourth-quarter earnings estimates.
Wall Street’s major indexes started the week full of gains on solid ground amid renewed appetite for growth stocks after a battering last year.
After posting its biggest gain in more than two months on Monday, Advanced Micro Devices (NASDAQ:) Inc fell 2.5% as brokerage Bernstein downgraded the chipmaker’s rating to “market performance” from “superior” citing a bleak outlook for the PC market.
Other chip makers, including Nvidia (NASDAQ:) Corp, intel corporation (NASDAQ:) and Broadcom (NASDAQ:) Inc fell between 0.4% and 1%.
Analysts now see fourth-quarter profit for companies falling 3% year-over-year, nearly double the 1.6% annual drop seen earlier in the year, according to Refinitiv data.
As of 6:58 am ET, they were down 65 points, or 0.19%, down 9 points, or 0.22%, and down 49.5 points, or 0.41%.
Other major growth stocks also fell, with Alphabet (NASDAQ:) Inc slipping 1.1%. The US Department of Justice is poised to sue Google on Tuesday, according to a report, regarding its dominance over the digital advertising market.
microsoft corporation (NASDAQ:) is scheduled to report quarterly earnings after the bell. The company’s shares were down 0.1%.
Zions Bancorporation (NASDAQ:) fell 2.7% after Chief Executive Harris Simmons warned the lender was still building up loan loss reserves amid recession concerns.
Data from S&P Global (NYSE:) later in the day will likely show the flash manufacturing PMI fell to 46.0 in January from a final reading of 46.2 in December, while the flash services PMI rose to 45. this month from 44.7 in December.
