Stocks fall at the open as the busiest week of earnings season kicks off - CNBC

Stocks traded lower on Monday as Wall Street braced for the busiest week of the earnings season.

The Dow Jones Industrial Average fell 83 points, while declines in the financials and industrials sectors pushed the S&P 500 down by 0.3%. The Nasdaq Composite also slipped 0.3%.

Boeing contributed the most to the Dow's losses, falling 1% after The New York Times reported that workers at the company's 787 jet plant have complained about shoddy production and bad safety practices.

More than 140 S&P 500 companies are scheduled to release their quarterly results this week, including Coca Cola, Procter & Gamble, United Technologies, Verizon, Twitter, Lockheed Martin and eBay. Facebook, Microsoft and Tesla Motors are also set to report later this week.

Halliburton and Kimberly-Clark are among the companies that reported better-than-expected quarterly results on Monday morning. Their shares rose 1.6% and 5.3%, respectively.

So far, the majority of corporate earnings reports have topped expectations. FactSet data shows 76.5% of the S&P 500 companies that have posted earnings have surpassed analyst estimates. Analysts came into the season with low expectations for the season, forecasting a 4.2% drop in profits.

"Considering the bar has been set very low for first-quarter profits, the likelihood is that any surprises could be on the upside," said Bruce Bittles, chief investment strategist at Baird, in a note. "Historically, stocks have done best when earnings gains have been modest as opposed to when earnings growth has been strong."

The broader market also fell after the South China Morning Post reported China's policy-making committee will pursue structural changes to its economy, rather than add stimulus. Chinese stocks closed sharply lower overnight, with the Shanghai Composite losing 1.7% while the Shenzhen A Shares index declined 1.5%.

Wall Street also focused on the oil market as U.S. crude rose 2.2% after the Trump administration said it will not allow the purchase of Iranian oil by some countries. The move could take about 1 million barrels per day out of the oil market. Energy shares rose along with oil prices. The Energy Select Sector SPDR Fund (XLE) traded 1% higher, led by Marathon Oil and Apache.

On the data front, existing home sales for March are expected at 10 a.m. ET.

—CNBC's Holly Ellyatt contributed to this report.

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https://www.cnbc.com/2019/04/22/us-futures-signal-lower-open-ahead-of-busy-earnings-week.html

2019-04-22 13:31:14Z
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