U.S. stock futures were lower to start trading for the new week as investors awaited more earnings and an important speech from Federal Reserve Chairman Jerome Powell.

Investors were also taking some profits after the stock market's hot start to the year. The S&P 500 is up more than 7% for 2023. The Nasdaq Composite is up the last five weeks in a row.

Dow Jones Industrial average futures lost 72 points. S&P 500 futures were lower by 0.3% and Nasdaq-100 futures fell by 0.4%.

Disney, Chipotle, Dupont and PepsiCo are among the major companies reporting earnings this week. We are about halfway through fourth-quarter earnings season for the S&P 500 and the results have not been great. Profits for S&P 500 companies are on pace to be 2.7% lower for the fourth quarter, according to Refinitiv. Tyson Foods and Cummins report on Monday, but the major reports pick up later in the week.

Markets will likely be on edge before Federal Reserve Chairman Jerome Powell speaks on Tuesday before the Economic Club of Washington. Powell's comments on disinflation starting caused investors to bid shares higher last week and overlook another rate hike out of the central bank. There is very little economic data due on Monday.

Investors seem to be looking past rate hikes and poor earnings and focusing on recent data that is showing inflation trending lower in the hopes that the economy is headed for a soft landing and profits will be revived later in the year. The S&P 500 just formed a bullish "Golden Cross" pattern and touched a 5-month high last week above the 4,100 level. The Nasdaq's 5-week winning streak is its first since November 2021.

Where the major averages stand

The S&P 500 and Nasdaq are coming off winning weeks despite ending Friday on a down note. The Dow Jones Industrial Average ended the week lower however.  

All of the major averages finished the Friday session lower. The S&P and Nasdaq fell      1.04% and 1.59%, respectively. The Dow was the outperformer, ending the day lower by just 0.38%.

However, the Dow was also the only one of the major averages to finish the week lower, by 0.15%. The S&P 500 and Nasdaq rose for the week by 1.62% and 3.31%, respectively.

The Dow has notched the smallest year-to-date gain, being up 2.35%, but it's sitting only 5.3% from its all-time high. Meanwhile, the S&P is 10.8% from its record and the Nasdaq 18.02%.

— Tanaya Macheel

Dow and S&P 500 futures open lower Sunday

Futures tied to the Dow Jones Industrial Average opened at 33,886.00 on Sunday evening after the index finished the Friday session at 33,926.01. S&P 500 futures opened at 4,134.25, after the benchmark index closed at 4,136.48 Friday. Nasdaq 100 futures were trading at 12,572.00. The Nasdaq Composite ended the Friday session at 12,006.95.

— Tanaya Macheel