S&P 500 futures slide ahead of a huge week of earnings reports

Stock futures fell as investors braced for a week of major first-quarter earnings reports.

The futures on the Industrial Average fell. S&P 500 futures fell. The futures of the stock exchange were lower.

Bank of America reports on Monday. Several blue-chip names will report earnings this week, including IBM, Travelers and Johnson and Johnson.

Technology bellwethers are due to report their quarterly earnings next week. The snap reports Thursday. United Airlines, American Airlines, and Alaska Air are all on the calendar.

The comments on how companies are handling rising costs will be important to investors. The consumer price index reading for March showed an 8.5% increase from a year ago, the fastest annual gain since 1981

The odds seem to be long against underlying inflation moderating to an acceptable pace without a significant deceleration of demand growth.

The S&P 500 companies have reported earnings per share above expectations so far. Seven percent of the benchmark has reported results. According to FactSet's analysis of actual results and future estimates, analysts think first-quarter earnings will jump 5% when all S&P 500 companies report.

Our belief is that the earnings season will likely bring down the earnings per share, but not as much as we would have thought a month ago. The better the earnings outlook is likely to be, if the company is more U.S. focused and services focused.

Despite some better-than- expected results, investors sold stocks last week as they worried about higher rates and inflation. The S&P 500 fell for the second week in a row. On the period, the index lost 2.63% and the index fell 0.8%. The holiday weekend caused U.S. stocks to not trade Friday.

The 10-year Treasury yield touched the highest levels in three years last week, which is weighing on the stock market.

When the market opens, investors will be watching how Twitter trades. The board adopted a shareholder rights plan after billionaire Musk offered to buy the company.

CNBC's Patti Domm reported the news.