U.S. stocks fluctuate as investors brace for earnings - BNN Bloomberg

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European stocks and U.S. equity futures were little changed Monday ahead of a slew company earnings that should provide a barometer of corporate health and the recession threat.

The Stoxx Europe 600 Index pared its gains to trade 0.09 per cent higher, while the Euro Stoxx 50 Index slipped 0.2 per cent after touching a level that would have marked its highest closing price since 2007. Contracts on S&P 500 and the Nasdaq 100 were little changed after the underlying indexes fell Friday as investors digested the possibility of more hawkish monetary policy from the Federal Reserve.

“After the data last week, there is a less pressing need to hike rates, plus there is an apparent easing in banking tensions,” said Peter Kinsella, head of FX strategy at Swiss asset manager UBP. “If we get a Fed rate hike in May, I think it will be one and done.” On Monday, investors are awaiting reports on Monday from Charles Schwab Corp. and State Street Corp. The former will be in particular focus after a 40 per cent share price plunge year-to-date, caused by rising interest rates. Later in the week, Bank of America Corp. and Goldman Sachs Group Inc. are due to deliver results along with Netflix Inc. and Tesla Inc.

However, most strategists remain bearish on the greenback as rate hikes wind down and recession looms.

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