Stock futures for the blue-chip Dow fell 0.7% on Wednesday, while those linked to the S&P 500 and Nasdaq were down 0.8% and 1.3%, respectively, as investors monitored a slew of corporate earnings releases.
Microsoft dropped more than 2% in premarket trading after the software giant registered its slowest sales growth in more than six years.
Boeing fell roughly 2% after recording a $663 million loss in the fourth quarter amid labor and supply chain issues.
On the other hand, AT&T added approximately 2% after the telecommunication company reported earnings results that topped analyst estimates.
Now, all eyes turn to Tesla, which will announce its earnings after the close. Investors have grown concerned about the chance of a recession as higher borrowing costs keep more companies from growing while slower sales force some into layoffs.
Morgan Stanley’s Mike Wilson said investors should brace for tougher times ahead.
“The numbers are actually going to finally come down in a way that we didn’t think would happen in Q4, which it didn’t, but now, we think that’s happening,” Wilson said Tuesday on CNBC’s “Closing Bell: Overtime.”
The investment strategist said he expects earnings will start to roll over as companies deal with a weakening consumer. There are no major economic reports scheduled to be released today.
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