Stock Futures Point to WeaknessThe tech stocks are expected to lead the stock indices lower
It is the earnings season in the US and we are getting a stream of earnings data for the quarter from the various companies in the US. The stock futures in the US over the last couple of weeks have been dominated by the way that the earnings of various companies have been during this period and it has to be said that the earnings from the various majors have been generally along expectations and it also has to be said that some of them have exceeded expectations as well.
CISCO Misses Expectations
In such a scenario, as we look at the futures before the market open today, we can see that it is slightly weaker and hence the opening of the markets in the U is also expected to be weaker for the day. The reason for this is the lesser than expected results from CISCO that was released late in the evening yesterday and this data is expected to dominate the markets for now. In fact, it has now raised fears that this could be a trend that is likely to be seen all across the tech sector in the US and we could probably see some weak data from the tech companies in the coming days.
With this in mind, we could see some paring of profits and some selling taking place in the tech stocks during the course of the day in the US which could in turn lead the stock indices lower during this period. This is in contrast to how the market was yesterday as the session from yesterday closed largely flat but this could also have been an early indicator for many of the investors and the traders that the markets could be under a lot of pressure in the coming days due to the weakness in the earnings from companies that have not yet posted their results.