Futures Rise Ahead of Tech Giants Reports, Fed Decision

Jul 24 (Reuters) – Futures on Wall Street’s major stock indexes rose on Monday as investors brace for big tech reports, including upside stocks, and a Fed decision later this week.

Meta Platforms, Microsoft and Alphabet will report this week as retailers anticipate an end to the nearly year-long slowdown in the cloud business as well as a surge in digital ad sales.

Last week’s reports from Netflix and Tesla did not make a rosy impression on investors.

Tesla shares fell 1.3% over-the-counter after UBS downgraded the electric car maker, while other growth stocks and big tech stocks gained traction.

“Investors have held their breath as key tech company reports are released that will provide insight into the state of ad demand as well as what the AI ​​race looks like,” said Sophie Lund-Yates of Hargreaves Lansdown.

The main event of the week will be the Fed meeting on Tuesday and Wednesday, where a 25 basis point rate hike is expected.

According to all 106 economists surveyed by Reuters, the US Federal Reserve will raise its key rate by 25 basis points to the range of 5.25-5.50%, with most still believing the hike will be the last in the current monetary tightening cycle.

Dow futures were up 0.05% at 14:42 GMT, the S&P 500 was up 0.16%, the Nasdaq 100 was up 0.25%.

Toymaker Mattel’s shares rose 1.5% as Barbie set a record for 2023 US domestic debuts. Film distributor Warner Bros added 0.7%.

AMC Entertainment jumped 47.5% after a court blocked a movie theater chain’s stock swap plan that threatened to dilute investors’ stakes in the company. AMC preferred shares fell 2.2%.

Domino’s Pizza shares fell 3.2% as profits from the world’s largest pizzeria chain fell short of expectations as higher delivery charges and higher prices reduced demand for pizza and chicken wings.

Exchange operator Nasdaq reduced the weighting of several companies that make up nearly half of the Nasdaq 100 to eliminate excessive concentration in the benchmark.

Investors are also waiting for the release of the preliminary US manufacturing PMI at 16:45 Moscow time.

The original message in English is available at the code: (Bansari Mayur Kamdar and Johann M Cherian in Bangalore)