Traders work on the floor of the New York Stock Exchange (NYSE), July 26, 2023.
Brendan McDermid | Reuters
Stock futures rose Tuesday as investors focused on a fresh slate of earnings reports, and traders monitored the latest moves in Treasury yields.
Futures tied to the Dow Jones Industrial Average added 114 points, or 0.3%. S&P 500 futures and Nasdaq 100 futures climbed 0.5% each.
General Motors shares rose more than 1% in the premarket on the back of better-than-expected third-quarter results. However, the company pulled its full-year outlook amid rising costs due to the United Auto Workers union strikes.
Coca-Cola also reported earnings and revenue that topped estimate, sending the stock up more than 1%. Spotify, meanwhile, dipped 4.3% even after the audio streaming giant posted third-quarter results that beat expectations.
Alphabet and Microsoft are among companies posting results after the market closes.
About 30% of S&P 500 companies are slated to report this week, the latest leg of an earnings season that has so far been better than Wall Street expected. About 19% of S&P 500 companies have already reported earnings, and three-quarters of them have posted earnings surpassing analysts’ expectations, according to FactSet.
Wall Street is coming off a mixed session on Wall Street as investors continued watching the U.S. 10-year Treasury yield, which rose above the 5% mark before falling that level. Rising yields have raised concerns about the state of the broader economy and pressured the stock market in recent weeks. On Tuesday, the benchmark rate was up about 1 basis point at 4.848%.
“Equities are trending sideways to being in a retreat mode given persistent inflation and higher-for-longer interest rates,” said Terry Sandven, chief equity strategist at U.S. Bank Asset Management. All the while, “the prospects for recession loom on the horizon.”
The Dow and S&P 500 finished Monday’s session down about 0.6% and 0.2%, respectively. But the technology-heavy Nasdaq Composite was able to finish up about 0.3%, as investors bought into the sector with important earnings reports ahead.