Stock futures drop in overnight trading as Microsoft reverses earlier gains

Stock futures fell in overnight trading on Tuesday.

Dow Jones Industrial Average futures slipped 106 points, the Nasdaq 100 lost 0.8% and S&P 500 futures fell 0.5%.

Microsoft shares fell about 1%, reversing earlier gains in after-hours trading. Initially, shares rose after the tech giant reported fiscal second-quarter earnings per share that beat analysts’ estimates. However, shares fell after the company offered a lackluster outlook on its earnings call.

Investors brace for stronger corporate earnings amid recession fears. So far, more than 70 S&P 500 companies have reported fourth-quarter results, and 65% of them posted stronger-than-expected results, according to Refinitiv.

“With the bulk of earnings still ahead of the market, whether the shift to growth signaled by recent rallies is warranted could be answered by upside earnings surprises and strong guidance,” said Quincy Krosby. , chief global strategist at LPL. Financial.

You’re hereBoeing, IBM and AT&T are among the companies expected to release numbers on Wednesday.

The overnight action followed a three-day winning streak for the blue-chip Dow. All three major averages are up at least 1% since the start of the week.