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U.S. Stocks Open Lower Ahead of Another Big Earnings Week

Published 01/08/2022, 15:00
Updated 01/08/2022, 15:00
© Reuters.

By Liz Moyer

Investing.com -- U.S. stocks opened lower ahead of another big week of earnings and closely watched jobs data expected on Friday.

At 9:46 AM ET, the Dow Jones Industrial Average fell 98 points, or 0.3%, while the S&P 500 fell 0.4% and the NASDAQ Composite fell 0.3%.

The S&P and Nasdaq closed out July with their best gains since 2020, fueled by a combination of strong earnings reports and the expectation that the Federal Reserve won’t be as aggressive as feared when it comes to raising interest rates.

The central bank hiked its benchmark rate another three-quarters of a point last week but seemed to suggest it could act less drastically in future meetings if inflation trends lower. The July jobs report due out on Friday will give the Fed more data on the direction of the economy, with expectations for a continued low unemployment rate of 3.6%.

Factory activity in China and Europe is slowing, another sign the global economy is cooling. For China, some of the slowdown is attributed to Covid-19 shutdowns that continue to affect operations there. U.S. factory activity data is due out later this morning, with analysts expecting a slight dip.

Meanwhile, S&P 500 companies continue to report earnings. So far this season, more than three-quarters of companies have beaten profit expectations, Reuters reported.

Boeing Co (NYSE:BA) stock rose 4% after a report that aviation regulators approved its inspection and modification plan to allow it to resume delivering its 787 Dreamliners.

Shares of electric truck maker Nikola Corp (NASDAQ:NKLA) fell 3.7% after it announced an all-stock deal to buy battery pack maker Romeo Power.

Oil tumbled. Crude Oil WTI Futures was down 4.6% to $94.06  a barrel, while Brent Oil Futures crude was down 3.4% to $100.43 a barrel. Gold Futures rose 0.4%, to $1,788 an ounce.

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