Dow, S&P futures rise ahead of earnings; tariffs eyed
The US stock market is set for a positive start to the week, with Dow and S&P 500 futures rising ahead of the release of key earnings reports from McDonald’s and Disney. The news has sent stocks higher, with strategists warning that the biggest risk to the market’s continued gains lies in the lingering impact of Trump-era tariffs.
As the market enters a seasonally weak phase, growth, large caps, and financials are being touted as the preferred sectors to invest in. However, Nasdaq futures are lagging behind, rising just 0.2% amid pullbacks in AI stocks.
The Dow Jones Industrial Average futures gained 0.35%, while the S&P 500 futures rose 0.37% in early trading. The Nasdaq Composite futures, which have been a strong performer this year, lagged behind, rising just 0.2%.
The gains come ahead of the release of earnings reports from McDonald’s and Disney, two of the most widely followed consumer companies. McDonald’s is expected to report earnings of $1.79 per share on revenue of $5.45 billion, while Disney is expected to report earnings of $1.14 per share on revenue of $14.75 billion.
While the earnings reports are expected to be strong, strategists are cautioning that the impact of Trump-era tariffs could have a significant impact on the market’s performance. The tariffs, which were imposed by the Trump administration in 2018 and 2019, have had a lasting impact on the global economy and could continue to weigh on the market.
“The biggest risk to the market is the tariffs,” said Michael Antonelli, market strategist at Robert W. Baird. “The tariffs are still in place, and they’re still having an impact on the economy. Until they’re resolved, it’s going to be a challenge for the market to move higher.”
Antonelli noted that the tariffs have had a particularly significant impact on the manufacturing sector, which has been a key driver of growth in the US economy. The tariffs have led to increased costs for manufacturers, which has had a ripple effect throughout the supply chain.
Growth stocks, which have been a key driver of the market’s gains in recent years, are also being touted as a preferred sector to invest in. The growth sector includes companies such as Amazon, Alphabet, and Facebook, which have been driving growth in the US economy.
Large caps, which have been a key driver of the market’s gains in recent years, are also being touted as a preferred sector to invest in. The large cap sector includes companies such as Apple, Microsoft, and Johnson & Johnson, which have been driving growth in the US economy.
Financials, which have been a key driver of the market’s gains in recent years, are also being touted as a preferred sector to invest in. The financial sector includes companies such as JPMorgan Chase, Bank of America, and Wells Fargo, which have been driving growth in the US economy.
In terms of specific stocks, Antonelli recommended investing in companies such as McDonald’s and Disney, which are expected to report strong earnings reports. He also recommended investing in companies such as Amazon and Alphabet, which have been driving growth in the US economy.
Overall, the market is set for a positive start to the week, with Dow and S&P 500 futures rising ahead of the release of key earnings reports. However, strategists are cautioning that the impact of Trump-era tariffs could have a significant impact on the market’s performance.
