US stock futures were slightly down on Tuesday morning after all three major averages rose during the daily trading session.
Dow Jones Industrial Average futures were flat. On Monday, the 30-stock index closed above its 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 earnings outlook. Shares in Compass fell nearly 1[ads1]3% after the real estate agent missed expectations for quarterly revenue and cut its outlook.
At the start of regular trading on Monday, energy and financials first pulled the markets lower after weak economic reports from China and news that the country’s central bank had unexpectedly cut interest rates. Later in the day, the markets recovered and went positive as consumer goods, communications services and consumer stocks rose.
Still, some see the recent gains as a bear market rally rather than the start of a new bull cycle.
“I think people are not sensitive enough to this economic downturn and what it’s going to mean for corporate earnings and profit margins,” Peter Boockvar, chief investment officer at Bleakley Advisory Group, said on CNBC’s “Fast Money.”
Investors have several earnings releases to look forward to in the coming week as major retailers are set to report. Home Depot and Walmart are scheduled to post results before the bell on Tuesday. Target and Lowe’s will report quarterly earnings on Wednesday.
This week, investors will also be watching for the minutes from the Federal Reserve’s July meeting, which could provide further clues about how the central bank will raise interest rates to tame inflation going forward.