Stock futures are falling as the earnings season continues

A trader works on the trading floor of the New York Stock Exchange (NYSE) in New York, August 3, 2022.

Andrew Kelly | Reuters

US stock futures were lower on Tuesday evening.

Futures linked to the Dow Jones Industrial Average fell 77 points, or 0.23%. S&P 500 and Nasdaq 100 futures fell 0.23% and 0.26%, respectively.

Shares of United Airlines rose more than 1% in extended trading after the company beat Wall Street estimates in the last quarter, propelled by strong travel demand.

Meanwhile, shares of Moderna rose more than 6% in extended trading after the pharmaceutical company said its vaccine targeting respiratory syncytial virus could prevent the disease in older adults.

During Tuesday’s regular session, the Dow fell about 391 points, or 1.14%. Shares of Goldman Sachs plummeted — and trailed on the 30-stock index — after the bank posted an earnings miss. The S&P 500 fell 0.20%. Meanwhile, the technology-heavy Nasdaq Composite was the only one of the leading averages to buck the trend, rising 0.14%.

Those moves follow the earnings results of major banks that suggested divergent paths even for names within the same industry. Shares of Goldman Sachs fell more than 6% on a decline in investment banking and asset management revenues. Meanwhile, Morgan Stanley gained 5.9%, boosted by better-than-expected asset management earnings.

“This is really a critical earnings season to figure out if companies can weather the storm and how long they can weather it,” SoFi’s Liz Young said Tuesday on CNBC’s “Closing Bell: Overtime.”

“I still think we’re in a space where the market tends to rebound after bad news. And the expectation is that means the Fed will slow, the Fed will pause, the Fed will pivot, the Fed stops sooner than they say. and I think right now we’re indexing too much to the Fed. It’s no longer just about the Fed,” Young added.

Traders are expecting a slew of economic reports on Wednesday, including the latest data for the producer price index and retail sales.

Economists polled by the Dow Jones expect the producer price index to be down 0.1% in December, compared to an increase of 0.3% last month.

Meanwhile, retail sales are expected to fall 1% in December, according to consensus estimates. The earlier reading showed a decline of 0.6%.

The corporate earnings season continues with JB Hunt Transport Services, Charles Schwab, PNC Financial Services Group and Discover earnings on Wednesday.