US stock futures were slightly lower on Tuesday morning, after all three major averages were hit during the daily trading session.
The Dow Jones Industrial Average futures were flat. On Monday, the 30-stock index closed above the 200-day moving average for the first time since late April. Both the S&P 500 and Nasdaq 100 futures fell 0.12%.
Shares of ZipRecruiter fell more than 5% in after-hours trading as the company lowered its revenue forecast. Shares of Compass fell nearly 13% after the real estate broker missed quarterly revenue expectations and lowered its outlook.
At the start of regular trading on Monday, energy and financial institutions initially dragged markets down following weak economic reports from China and news that the country’s central bank had unexpectedly cut interest rates. Later in the day, markets recovered and turned positive as consumer staples, communications services and consumer discretionary rose.
Still, some see recent gains as a bear market rally rather than the start of a new bull cycle.
“I don’t think people are sensitive enough to this economic slowdown and what it’s going to mean for corporate earnings and profit margins,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group, on CNBC’s “Fast Money.”
Investors have more earnings releases to look forward to in the coming week as major retailers will report. Home Depot and Walmart will publish the results before the bell Tuesday. Target and Lowe’s will report quarterly results on Wednesday.
This week, investors will also want to pay attention to the minutes of the Federal Reserve’s July meeting, which could provide further clues as to how the central bank will raise interest rates to contain inflation going forward.