Stocks are taking a pause on their upward trajectory. Futures on the main U.S. stock indexes were flat to lower as the big U.S. banks, and Delta Air Lines, begin reporting their fourth- quarter earnings.
Hong Kong’s Hang Seng Index was down about 0.2% in overseas trading, while the U.K’.s FTSE 100 Index fell about 0.1%. In the U.S., the Dow Jones Industrial Average was barely in positive territory, but the S&P 500 and Nasdaq Composite futures were narrowly in the red.
Some stocks are moving more significantly in premarket trading Tuesday.
The stock is heavily shorted—with bearish investors borrowing and selling shares, betting on price declines. That can lead to a so-called short squeeze when a lot of bears rush to buy stock to close their negative bets all at once. That’s one potential reason.
There have also been some product-distribution announcements at Beyond and its rivals in recent days. Still, it’s hard to pin the $40 stock price jump over the past month on any single data point.
Apple (AAPL) stock is moving, a little. Shares of the tech giant were downgraded at Atlantic Equities to the equivalent of Sell from Hold. Some analysts are wondering if the stock can continue its epic run. Apple shares are up 111% over the past year.
Boeing (BA) and Spirit AeroSystems (SPR) are unchanged in premarket trading, but both stocks could move more than usual Tuesday. The bond-rating company Moody’s put Boeing debt on watch for a credit downgrade. Moody’s downgraded debt of Spirit, a key Boeing supplier, into junk-bond territory.
Banks kick off earnings season Tuesday. Citigroup (C), JPMorgan Chase (JPM) and Wells Fargo (WFC) report numbers. JPMorgan earned more than expected for the fourth quarter. Results from Citigroup and Wells Fargo are due later this morning.
Delta Air Lines (DAL) is expected to report $1.40 in per share earnings. The fourth quarter is a seasonally weak period for airline earnings. Investors will be interested to hear about the airline’s expectations for pricing and costs for the first quarter.