Stock Market News Live Updates: August 1, 2022

US stock futures slid early Monday, meaning that August opened lower to begin trading, with all three major indexes registering their best month since 2020.

Futures tied to the S&P 500 faltered 0.3%, while futures on the Dow Jones Industrial Average fell nearly 60 points, or 0.2%. The contract fell 0.3% on the tech-heavy Nasdaq Composite.

The move comes after a month of strong gains in stocks on Friday. In July, the benchmark S&P 500 index rose 9.1%, fighting back a year from its worst start since 1962. The Nasdaq Composite rose 12.3% to enter one of its best months on record, and the Dow Jones Industrial Average rose 6.7%. month.

Datatrack’s Nicolas Kolas points out that in recent weeks, equities have shown typical “risk-on” behavior, with small-cap stocks outperforming large-caps, and the Nasdaq Composite outperforming the S&P 500. The ray rose sharply as expectations that signs of a recessionary economy could prompt the Federal Reserve to ease its interest rate hiking cycle in the fall.

“Summer is a great time to go camp, but we’re not out of the woods yet,” Bank of America analysts said in a note Sunday morning, warning of more pain for equities.

During the past five recessions, earnings estimates for the S&P 500 index have come down only after they were revised — with the exception of 1990 when forward EPS remained flat — but the cut in estimates is only beginning, BofA reported.

“Our bull market signposts also indicate that it is premature to call ahead,” said analysts, adding that historical market bottoms occur when 80% of the downtrend indicators are triggered, currently. Compared to only 30% and bear markets usually end only after the Fed begins to cut rates – a move at least six months away.

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A trader works on the floor of the New York Stock Exchange (NYSE) on July 26, 2022 in New York City, US. Reuters/Brendan McDermid

Investors are in for another busy week of economic data and corporate earnings. The Labor Department’s July jobs report is the week’s key event, with Friday’s data showing non-farm payrolls expected to increase by 250,000 in July.

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Meanwhile, another 150 companies in the S&P 500 are on deck to report second-quarter results.

According to FactSet data, while some earnings have been better than expected, about 56 per cent of companies that have reported earnings for the second quarter so far have only earned 3.1 per cent more than expected, down from the five-year average of 8.8 per cent. . research.

Releases from companies including Aflac (AFL), Activision Blizzard (ATVI), Pinterest (PINS), and World Wrestling Entertainment (WWE) are on tap on Monday.


Alexandra Semenova is a reporter for Yahoo Finance. follow him on twitter @alexandraandnyc

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