Stocks were down on Monday, up on Tuesday, down on Wednesday, up on Thursday, and, you guessed it, down on Friday...at least that's the indication of the futures market. The S&P 500 futures are currently trading two points, or 0.1%, below fair value, putting the S&P 500's weekly gain of 0.3% in jeopardy at the opening bell.
There are a few catalysts that could be credited for this morning's bearish bias, including a 5% drop in the Turkish lira, which has resumed a larger downward trend following a three-day rebound, and lower-than-expected Q3 guidance from chipmaker, and market-darling, NVIDIA (NVDA), which is down 2.3% in pre-market trading.
However, if futures were pointing to a higher open, we could just as easily be talking about the easing of trade tensions between the U.S. and China following reports on Thursday that Washington and Beijing will hold fresh trade talks later this month. Although those talks will be lower-level -- not all that impressive -- that news was credited for fueling the bulk of yesterday's 0.8% gain in the S&P 500.
Today's lower open could turn into something more or be a pause before the resumption of yesterday's rally, but, at the present time, it feels like it's just the continuation of this week's trend.
Back to the earnings front, in addition to NVIDIA, several other notable companies have reported their quarterly results since yesterday's close. Deere (DE) and Applied Materials (AMAT) are both down, losing 3.2% and 4.5%, respectively, while Nordstrom (JWN) has spiked 7.6% after beating bottom-line estimates and raising its guidance.
Economic data will be relatively light today with just two reports on the calendar -- neither of which is expected to be market-moving. The Conference Board's Leading Economic Index for July (Briefing.com consensus +0.5%) and the University of Michigan Consumer Sentiment Index for August (Briefing.com consensus 97.8) will be released at 10:00 ET.