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(Reuters) -U.S. stock futures pointed to a subdued open on Wall Street on Tuesday as mixed earnings and fresh declines in Meta Platforms added to jitters ahead of inflation data this week that could offer clues on the path of interest rates.
Pfizer Inc (NYSE:PFE) fell 3.7% in premarket trading after the drugmaker’s full-year sales forecast for its COVID-19 vaccine and antiviral pills fell short of Wall Street estimates, while Coty (NYSE:COTY) Inc gained 3.4% after raising its earnings forecast for 2022.
The main U.S. stock indexes took a hit on Monday after Facebook-owner Meta Platforms fell 5%, extending its losing run after its bleak forecast wiped out billions in dollars of market value last week.
Its shares were down another 1.7% on Tuesday after billionaire investor Peter Thiel decided to step down from the company’s board.
“We have got a rising interest rate environment which we haven’t seen since 2018 and there are a lot of investors in high growth names that continue to see weakness,” said Dennis Dick, a trader at Bright Trading LLC in Las Vegas.
“You’re going to see money rotate to lower multiple names and more value-oriented market.”
Meanwhile, Nvidia (NASDAQ:NVDA) Corp slipped 1.2% after SoftBank Group Corp shelved its blockbuster sale of Arm Ltd to the chipmaker in a deal valued at up to $80 billion, citing regulatory hurdles.
At 08:24 a.m. ET, Dow e-minis were up 50 points, or 0.14%, S&P 500 e-minis were down 1.75 points, or 0.04%, and Nasdaq 100 e-minis were down 27.25 points, or 0.19%.
U.S. stocks have had a rough start to the year, with concerns around aggressive policy tightening by the U.S. Federal Reserve, geopolitical tensions in Ukraine and a mixed bag of results from Big Tech names weighing on the major indexes.
All eyes are on the U.S. consumer prices data, set to be released on Thursday, after a stunningly strong U.S. labor data last week put extra focus on inflation. The numbers are forecast at a four-decade high 7.3%.
Among other stocks, Peloton Interactive (NASDAQ:PTON) Inc declined 2.8% after slashing its revenue forecast and said it would replace its chief executive officer, cut jobs and appoint new board members as the company wrestles with waning demand for its at-home fitness equipment.
General Motors Co (NYSE:GM) fell 3.9% after Morgan Stanley (NYSE:MS) downgraded the automaker’s stock to “equal-weight” from “overweight”.
Of the 281 companies in the S&P 500 that reported earnings as of Monday, 78.3% beat analysts’ profit expectations, compared with an average of 84% over the past four quarters, according to Refinitiv data.
