U.S. stock futures fell Tuesday, suggesting that the major indexes will extend losses as investors assessed blue-chip companies’ profits and sales prospects.
Investors are looking to companies’ first-quarter earnings and their outlook for the rest of the year to gauge whether valuations on stocks are justified. Strong U.S. economic data has bolstered expectations and fueled the recent rally that has left the major indexes hovering close to record highs. Rising Covid-19 infection levels in some countries and signs that the vaccine rollout may be faltering are now tempering that optimism.
“All these company share prices are near or close to record highs and we are seeing a lot of people taking money off the table,” said Michael Hewson, chief market analyst at CMC Markets. “There is a general lack of impetus.”
Ahead of the opening bell, United Airlines fell 2.2% after reporting weaker than expected results for the first quarter. Tesla fell a further 1%. The auto maker slipped 3.4% on Monday following a fatal crash involving one of its vehicles.