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The
S&P 500 and the Nasdaq posted their biggest monthly percentage
gains since 2020 in July on stronger-than-expected
second-quarter results and on hopes the Federal Reserve need not
to be as aggressive with interest rate hikes as some had feared.
The upbeat mood faded on Monday as surveys showed factories
across Asia and Europe struggled for momentum in July as
flagging global demand and China's strict COVID-19 curbs slowed
production.
The Institute of Supply Management's manufacturing Purchasing
Managers Index is expected to show factory activity slowed in
July to 52.0 from 53.0 in June, according to a Reuters poll.
Worries about a recession have weighed on stock markets this
year, with the benchmark index down 13.3% as investors adjust
their expectations on economic growth and corporate profits in
the face of tightening financial conditions.
However, the earnings season has showed companies were far more
resilient in the second quarter than estimated. Of the 279 S&P
500 companies that have reported results so far, 77.8% have
topped profit estimates, as per Refinitiv data. The long-term
average is 66.1%.
Activision Blizzard, Devon Energy and Simon Property Group are
scheduled to report quarterly results later in the day.
At 07:10 a.m. ET, Dow e-minis were down 17 points, or 0.05%, S&P
500 e-minis were down 7.5 points, or 0.18%, and Nasdaq 100
e-minis were down 20.5 points, or 0.16%.
Boeing Co gained 5.2% in premarket trading after a Reuters
report that the U.S. Federal Aviation Administration approved
the planemaker's inspection and modification plan to resume
deliveries of 787 Dreamliners.
(Reporting by Aniruddha Ghosh and Devik Jain in Bengaluru;
Editing by Arun Koyyur)
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