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Futures down: Dow 0.22%, S&P 500 0.32%, Nasdaq 0.31%
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Domino's Pizza falls after Q1 U.S. same store sales
decline
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36% of S&P 500 companies set to report results this week
(Updates with quote, prices)
By Lisa Pauline Mattackal and Purvi Agarwal
April 28 (Reuters) - U.S. stock index futures edged
lower on Monday as investors headed into a week packed with key
economic data and earnings from some of Wall Street's biggest
companies, while the Trump administration's trade policy
developments remained in focus.
The three main indexes ended Friday with weekly gains, while
the small-cap Russell 2000 marked its best week since
November as signs emerged that the U.S. and China could be
willing to de-escalate trade tensions.
However, competing claims on the state of negotiations from
Beijing and U.S. President Donald Trump highlighted the
uncertainties facing investors as they attempt to navigate
Trump's disruption of world trade.
"Even though work on multiple bilateral trade deals is
continuing and some rapprochement between China and the U.S. is
expected, high uncertainty remains," said Susannah Streeter,
head of money and markets, Hargreaves Lansdown.
The upcoming week will see 180 S&P 500 companies report
quarterly results, with the spotlight on "Magnificent Seven"
megacaps Apple ( AAPL ), Microsoft ( MSFT ), Amazon ( AMZN ) and
Meta Platforms ( META ).
Earnings season has so far has been somewhat upbeat, with
S&P 500 earnings now expected to climb 9.7% in the first quarter
from a year ago, higher than an April 1 estimate for an 8% gain,
according to LSEG IBES.
Of the 179 companies in the S&P 500 that have reported
earnings to date for the first quarter, 72.6% have reported
earnings above analyst expectations, according to estimates
compiled by LSEG.
However, many companies have flagged the uncertainty caused
by the changing stance on tariffs, with some, including Procter
& Gamble ( PG ), cutting annual forecasts, and others such as
American Airlines ( AAL ) pulling their annual profit outlook
entirely.
A majority of economists polled by Reuters said the risks of
the global economy slipping into recession this year were high,
with many pointing to Trump's tariffs as damaging to business
sentiment.
Crucial economic data, most notably monthly U.S. payrolls
data, gross domestic product data and the personal consumption
expenditures price index, will also be keenly watched for
signals on how new tariffs are impacting economic growth,
inflation and the labor market.
At 6:55 a.m. ET, Dow E-minis were down 88 points, or
0.22%, S&P 500 E-minis were down 17.75 points, or 0.32%,
and Nasdaq 100 E-minis were down 61.5 points, or 0.31%.
The week also marks 100 days since U.S. President Donald
Trump took office. An initial rally in equities after his
election, on hopes for more pro-business policies and
deregulation, has waned.
Instead, the S&P 500 has declined more than 4% since
Trump's election victory in November, and fallen over 10% from
its February record high as markets assess the potential impact
of tariffs.
"The hope for Trump bump for the economy threatens to be a
slump, with recession fears swirling and America's reputation
for stability is set to stay under pressure," said Streeter.
Among individual stocks, Tesla rose 1.3% after
soaring nearly 10% in the previous session.
Dominos Pizza fell 3.6% after it posted a surprise
decline in first-quarter U.S. same-store sales on weak consumer
spending.
(Reporting by Lisa Mattackal and Purvi Agarwal in Bengaluru;
Editing by Devika Syamnath)