From the Wall Street Journal’s “Stock Futures Waver Ahead of Big Tech Earnings” posted early Wednesday:
U.S. stock futures wobbled ahead of corporate results that will provide insight into the effects on the technology industry of inflation and supply-chain disruptions, including from the global chip shortage…
Telecommunications giant Verizon is scheduled to post earnings before the opening bell. Tesla and IBM are expected to report after markets close.
Stocks have climbed in recent days as investors parsed strong earnings. Major companies have said that labor shortages, higher raw-materials prices and supply-chain issues haven’t eroded profits substantially, reassuring investors.
For tech companies like the ones reporting Wednesday, investors will be watching for an update on disruptions in the semiconductor space and the ability of large firms to increase prices to consumers, according to Kiran Ganesh, a multiasset strategist at UBS Global Wealth Management.
“Markets are taking a bit of a breather after a very strong run. Earnings are very good so far, across a pretty broad range. We’re looking out for margins, and comments on input costs, and we haven’t really seen too much concern on that,” he said. “This is what’s really been supporting the rally.”
UPDATE: Since this was posted, max pain slid up to $145. More likely a delayed update at maximum-pain.com than a burst of premarket option sales.