U.S. stock futures were little changed Tuesday after the Dow Jones Industrial Average registered its longest winning streak since February 2017. Dow Jones Industrial Average futures was flat. Futures linked to the S&P 500 advanced by 0.07%, and Nasdaq-100 futures climbed 0.33%. General Motors shares rose more than 1% after the automaker hiked its full-year earnings guidance. General Electric also climbed 4% on the back of stronger-than-expected revenue for the second quarter. The Dow on Monday rose more than 183 points, or 0.5%, marking its 11th consecutive winning session. The 30-stock index also hit its highest level since April 2022 and had its highest close since February 2022. The S&P 500 and the Nasdaq Composite added 0.4% and 0.2%, respectively. While a stronger-than-expected earnings season has helped maintain the market rally, Wall Street is also carefully awaiting the Federal Reserve’s policy decision on Wednesday. Fed fund futures data shows a 98% probability of a quarter-point hike, according to the CME FedWatch Tool. Investors are waiting for Chair Jerome Powell’s statements on his outlook for the economy as it tackles inflation. “Clearly, the market has a significant amount of momentum. … But we think the fundamental backdrop is still quite negative. Stocks are not bound by any sort of fundamentals,” Eric Johnston, Cantor Fitzgerald’s head of equity derivatives and cross asset, said on CNBC’s “Closing Bell: Overtime.” “We think that the economic risk and the earnings risk [are] one-sided. Meaning that if everything remains okay, then what you see right now – which is sort of subdued, but steady growth — would remain. But we think the risk is really the downside for economic growth,” Johnston added. Mega-cap tech names Alphabet and Microsoft are scheduled to announce their quarterly results after the close. Wall Street will also look at July’s consumer confidence data. Hong Kong stocks saw a strong rebound and the Hang Seng index climbed over 4% on Tuesday after China’s Politburo pledged to “adjust and optimize policies in a timely manner” for its ailing property sector. The Hang Seng Tech index also surged over 6%, led by Chinese electric vehicle makers. This comes after disappointing economic data last week prompted renewed calls for policy support to bolster growth. Mainland Chinese stocks were also all higher, with the Shanghai Composite up 2.13% to close at 3,231.52, its highest one day gain since February. Meanwhile, the Shenzhen Component rose 2.55% and ended at 11,021.29, the highest one day gain since October 2022. Other Asian markets were also mostly up. South Korea’s Kospi traded up 0.3% and closed at 2,636.46, while the Kosdaq was 1.08% higher and ended at 939.96, resuming its climb after snapping nine straight days of gains on Monday. South Korea saw a 0.9% year-on-year growth in its second quarter gross domestic product, according to advance estimates on Tuesday. Australia’s S&P/ASX 200 extended its gains from Monday, rising 0.46% and finishing at 7,339.7. However, in Japan, the Nikkei 225 fell marginally to end at 32,682.51, while the Topix rose 0.18% to close at 2,285.38 and extend its winning streak to four days. Oil prices edged higher on Tuesday, extending gains from the previous session, as signs of tighter supplies and pledges by Chinese authorities to shore up the world’s second-biggest economy lifted sentiment. Brent futures gained 7 cents at $82.81 a barrel at 00:07 GMT, while U.S. West Texas Intermediate crude rose 11 cents at $78.85. Both benchmarks rose over 2% the previous day, and hit their highest closes since April. Gold prices rose marginally on Tuesday, while traders awaited a widely anticipated rate hike along with monetary policy clues from the U.S. Federal Reserve over the next two days. Spot gold rose 0.1% to $1,955.06 per ounce. U.S. gold futures dipped 0.3% to $1,956.60.
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