Investors were also taking some profits after the stock market's hot start to the year. The S&P 500 is up more than 7% for 2023. The Nasdaq Composite is up the last five weeks in a row.lost 72 points. S&P 500 futures were lower by 0.3% and Nasdaq-100 futures fell by 0.4%.
Disney, Chipotle, Dupont and PepsiCo are among the major companies reporting earnings this week. We are about halfway through fourth-quarter earnings season for the S&P 500 and the results have not been great. Profits for S&P 500 companies are on pace to be 2.7% lower for the fourth quarter, according to Refinitiv. Tyson Foods and Cummins report on Monday, but the major reports pick up later in the week.
Markets will likely be on edge before Federal Reserve Chairman Jerome Powell speaks on Tuesday before the Economic Club of Washington. Powell's comments on disinflation starting caused investors to bid shares higher last week and overlook another rate hike out of the central bank. There is very little economic data due on Monday.
Investors seem to be looking past rate hikes and poor earnings and focusing on recent data that is showing inflation trending lower in the hopes that the economy is headed for a soft landing and profits will be revived later in the year. The S&P 500 just formed a bullish
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