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 167 points, or 0.5%. 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 as investors continue to watch 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. “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. U.S. Treasury yields were steady on Tuesday after slipping back below 5%, though they remained near 16-year highs. At around 7:47 a.m. ET, the yield on the benchmark 10-year Treasury note was up around 1 basis points at 4.85% while the yield on the 30-year Treasury bond climbed less than one basis point to 4.99%. Asia-Pacific markets rebounded and erased earlier losses as investors assess private surveys of business activity from Japan and Australia, as well as the October producer price index from South Korea. In Australia, the S&P/ASX 200 gained 0.19%, recovering from three straight days of losses and finishing at 6,856.9. Japan’s Nikkei 225 rebounded as well and climbed 0.2% to end at 31,062.35, and the Topix closed marginally up at 2,240.73 as the October purchasing managers index flash reading saw its first contraction since December 2022. South Korea’s Kospi closed 1.12% up at 2,383.51, ending a three-day losing streak, while the Kosdaq surged 2.77% to 784.86. This comes after the country’s producer price index climbed at a faster pace of 1.3% year-on-year in September, compared to 1% in August. Mainland Chinese markets rebounded, with the CSI 300 index gaining 0.37% and finishing at 3,487.13, snapping four straight days of losses. Hong Kong’s Hang Seng index came back from a holiday and was 0.89% lower in its final hour of trade. Oil prices rose in early Asia trade on Tuesday, recovering some of the previous day’s losses, as investors remained nervous that the Israel-Hamas war could escalate into a wider conflict in the oil-exporting region, causing potential supply disruptions. Brent crude futures climbed 70 cents, or 0.8%, to $90.53 a barrel by 0032 GMT, while U.S. West Texas Intermediate crude futures increased 71 cents, or 0.8%, to $86.20 a barrel. Gold prices rebounded on Tuesday as benchmark U.S. Treasury yields pulled back, while investors awaited economic data for guidance on interest rates and monitored growing tensions in the Middle East. Spot gold was up 0.2% at $1,976.99 per ounce by 0349 GMT, while U.S. gold futures was steady at $1,988.10.
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