US Futures Struggle With Focus on Earnings, Rates: Markets Wrap

US equity futures struggled for traction at the start of a week packed with corporate earnings reports and economic data that may help illuminate the path for interest rates.

(Bloomberg) — US equity futures struggled for traction at the start of a week packed with corporate earnings reports and economic data that may help illuminate the path for interest rates.

Contracts for the S&P 500 and the Nasdaq 100 were little changed following a muted end to trading last week. Treasury yields fell and a gauge of the dollar was steady.

Leveraged investors boosted net short positions on 10-year Treasury futures to a record 1.29 million contracts as of April 18, data from the Commodity Futures Trading Commission show. That’s an indication they think the Federal Reserve will keep raising rates to tackle inflation. Earnings this week from tech majors, among others, will be parsed for insights into the effect of higher borrowing costs and a struggling economy. 

“Earnings estimates for the back half of the year in the US remain too optimistic; we do still see a mild recession ahead,” Laura Cooper, a senior investment strategist at BlackRock International Ltd., said on Bloomberg TV. “So we are really more selective in our equity space and crucially, earnings will provide some color on guidance going forward and that could tilt out view a bit.”

Swaps markets continue to see Fed rates peaking in coming weeks before a series of cuts later this year. US GDP data is forecast to reveal slowing growth, while the so-called core PCE deflator, the central bank’s preferred inflation gauge, is expected to show price growth cooled.

“We should take the Fed at face value when they say rates are not going lower this year,” said Kieran Calder, head of equity research for Asia at Union Bancaire Privée in Singapore, on Bloomberg Television. “Inflation, especially core inflation, remains really sticky.”

The Stoxx Europe 600 was little changed, with energy companies leading declines as crude prices extended last week’s slump. Banks gained, with UBS Group AG climbing more than 2% after takeover target Credit Suisse AG reported outflows that were lower than some analysts had expected. Royal Philips NV jumped more than 12% after easing supply-chain pressures helped drive strong first-quarter earnings for the Dutch medical technology firm.

The euro area will publish GDP data this week, and there will be a policy decision in Sweden. A report Monday showed Germany’s business outlook unexpectedly improved for a sixth month as the economy gradually recovers from the energy shock. The euro gained against the dollar.

Elsewhere, new Bank of Japan Governor Kazuo Ueda will hold his first policy meeting later this week. The central bank is planning to review and inspect policies taken over the past decades as soon as this week’s meeting, Sankei newspaper reported Sunday.

A busy week for earnings will include The Cocal Cola Co., First Republic Bank and First Citizens Bank, the acquirer of Silicon Valley Bank. Tech companies will also be in the spotlight with those to report including Microsoft Corp., Meta Platforms Inc. and Inc.

Credit Suisse earlier Monday reported 61.2 billion francs ($69 billion) of outflows in the first quarter and net revenue of 18.47 billion francs. UBS Group is reporting on Tuesday.

Key events this week:

  • ECB Governing Council members Boris Vujcic, Francois Villeroy de Galhau, speak at events, Monday
  • US new home sales, consumer confidence, Tuesday
  • South Korea GDP, Tuesday
  • Australia CPI, Wednesday
  • Sweden rate decision, Wednesday
  • Eurozone economic, consumer confidence, Thursday
  • US initial jobless claims, GDP, Thursday
  • Bank of Japan meets on interest rates, Friday
  • Euro-area GDP, Friday
  • US personal income, Friday

Earnings highlights:

  • Monday: Coca-Cola, First Republic
  • Tuesday: Pepsi, General Motors, General Electric, McDonalds, Microsoft, UBS, UPS
  • Wednesday: Boeing, Meta, Hilton
  • Thursday: Amazon, American Airlines, Intel, Mastercard, Southwest Airlines, Hershey, Honeywell, Barclays
  • Friday: First Citizens Bank, acquirer of Silicon Valley Bank

Some of the main moves in markets:


  • S&P 500 futures fell 0.1% as of 7:09 a.m. New York time
  • Nasdaq 100 futures were little changed
  • Futures on the Dow Jones Industrial Average fell 0.2%
  • The Stoxx Europe 600 was little changed
  • The MSCI World index was little changed


  • The Bloomberg Dollar Spot Index was little changed
  • The euro rose 0.2% to $1.1007
  • The British pound was unchanged at $1.2432
  • The Japanese yen fell 0.4% to 134.64 per dollar


  • Bitcoin fell 0.2% to $27,445.83
  • Ether was little changed at $1,847.4


  • The yield on 10-year Treasuries declined three basis points to 3.54%
  • Germany’s 10-year yield was little changed at 2.49%
  • Britain’s 10-year yield advanced one basis point to 3.77%


  • West Texas Intermediate crude fell 0.3% to $77.65 a barrel
  • Gold futures rose 0.2% to $1,993.90 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Tassia Sipahutar, Allegra Catelli and Garfield Reynolds.

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