US pre-open: Futures in the red ahead of Nvidia earnings, Fed minutes

22nd May 2024 11:23

(Sharecast News) - Wall Street futures were in the red ahead of the bell on Wednesday as investors look ahead to earnings from chipmaker Nvidia after the close.

As of 1230 BST, Dow Jones futures were down 0.11%, while S&P 500 and Nasdaq-100 futures were 0.10% and 0.01% weaker, respectively.

The Dow closed 66.22 points higher on Tuesday but fell short of the psychologically important 40,000-point mark.

Wednesday's primary focus will be quarterly earnings from Nvidia, with the tech giant expected to report another strong performance, with consensus estimates expecting earnings and revenue to have risen 400% and 240% year-on-year, respectively.

Elsewhere in the corporate space, retailer Target missed expectations with its latest set of earnings, while Urban Outfitters beat on both the top and bottom line with its quarterly numbers and homebuilder Toll Brothers surpassed analysts' estimates with its fiscal performance and raised full-year delivery guidance.

Analog Devices and TJX will also post their latest results on Wednesday.

On the macro front, mortgage applications jumped 1.9% week-on-week in the seven days ended 17 May, adding to the 0.5% increase in the prior week and marking the third weekly growth in mortgage demand, according to the Mortgage Bankers Association of America. The increase comes alongside a drop in average mortgage rates that saw financing costs hit a seven-week low. Applications to refinance a mortgage, jumped by 7%, offsetting a 1% drop in mortgage applications to purchase a home.

Still to come, existing home sales data will be published at 1500 BST, while minutes from the Federal Open Market Committee's latest two-day policy meeting will be out at 1900.

Reporting by Iain Gilbert at Sharecast.com