The New York Stock Exchange saw a positive start to the day on Aug. 4, 2022, as S&P 500 futures rose in overnight trading, driven by strong earnings from tech giants Alphabet and Microsoft.
Futures linked to the broad market index climbed 0.7%, with Nasdaq 100 futures up 1% and Dow Jones Industrial Average futures gaining 0.08%. Alphabet’s shares surged 11% in extended trading after reporting better-than-expected first-quarter earnings and announcing its first-ever dividend and a $70 billion buyback. Microsoft also saw a 4% increase in shares following impressive fiscal third-quarter results.
The positive performance of these megacap stocks is expected to boost the major averages after a down day on Wall Street, where the Dow dropped 375 points and the S&P 500 and Nasdaq Composite fell 0.5% and 0.6%, respectively. The sell-off was triggered by new U.S. economic data showing slower growth and persistent inflation.
Despite the recent market fluctuations, major averages are on track for a winning week, with the S&P 500 up 1.6%, the Nasdaq gaining over 2%, and the Dow rising 0.3%. Nearly 80% of S&P 500 companies have beaten earnings expectations so far this quarter.
Investors are eagerly awaiting earnings reports from energy giants Chevron and Exxon Mobil on Friday, along with the release of March’s PCE reading, a key inflation gauge closely monitored by the Federal Reserve.
Overall, the market remains optimistic as strong earnings and positive economic indicators continue to drive investor confidence.
