Futures rise as Treasury yields retreat, earnings in focus

2023-10-24 18:17

Futures tracking Wall Street's main indexes gained on Tuesday after the benchmark U.S. Treasury yields slipped from the

Futures tracking Wall Street's main indexes gained on Tuesday after the benchmark U.S. Treasury yields slipped from the 5% milestone hit a day earlier, while investors looked forward to earnings from technology giants.

The yield on the 10-year note fell to 4.8272%, after rising above the 5% mark in the previous session.

The S&P 500 and the Dow Jones ended lower on Monday, while the Nasdaq managed to eke out gains as Nvidia and Microsoft climbed.

Earnings from bigwigs such as General Motors, General Electric and Coca Cola will be on investors' radar before the bell. Microsoft and Alphabet will report after the market closes.

U.S. technology giants are expected to post their strongest quarterly revenue growth in at least a year as their legacy businesses stabilized.

Of the 86 companies in the S&P 500 that have reported earnings so far, 78% reported above analyst expectations, LSEG data showed. Overall, third-quarter earnings are expected to rise 1.2% year-on-year.

U.S. stocks have been battered since the end of July, when the S&P 500 had hit its high for the year, on worries that the Federal Reserve will keep its monetary policy restrictive longer than expected against the backdrop of a still-strong economy.

The S&P 500 is up 10% year-to-date.

In economic data, S&P Global's manufacturing and services Purchasing Managers' Index will be closely monitored to assess the strength of the American economy.

The Commerce Department will announce third-quarter GDP on Thursday, seen accelerating to 4.3%. Its wide-ranging Personal Consumption Expenditures (PCE) report, due on Friday, is expected to show annual headline cooling to 3.4%.

Meanwhile, the turmoil in the Middle East will also be in focus as Israel intensified its assault on Hamas in Gaza.

At 5:08 a.m. ET, Dow e-minis were up 81 points, or 0.24%, S&P 500 e-minis were up 15.5 points, or 0.37%, and Nasdaq 100 e-minis were up 67.5 points, or 0.46%.

Nvidia NVDA.O> rose 1.2% in premarket trading after Reuters reported that the chip giant has quietly begun designing central processing units that would run Microsoft's Windows operating system and use technology from Arm Holdings.

Arm was up 2.6% while Intel was flat.

Crypto-linked stocks rose for a second consecutive session as Bitcoin jumped to over one-year high.

Shares of Coinbase were up 8.2%, Riot Platforms climbed 12.3% and Marathon Digital rose 12.9%.