Jittery Day For US Market? S&P 500, Dow Futures Retreat Ahead Of Big Earnings Day, Consumer Confidence Data — Tesla, Microsoft, Alphabet, Chinese Stocks In Focus

Zinger Key Points
  • Tech earnings predominate the week's earnings news flow.
  • The market could pause for a breather following the recent short run-up.
Jittery Day For US Market? S&P 500, Dow Futures Retreat Ahead Of Big Earnings Day, Consumer Confidence Data — Tesla, Microsoft, Alphabet, Chinese Stocks In Focus

The major U.S. index futures were pointing to a lower opening on Tuesday ahead of some key tech earnings reports. Traders may prefer to step to the sidelines or take some profit off the tables following the recent leg-up by stocks.

On Monday, stocks advanced amid hopes that ongoing earnings momentum will help avert any economic setback.

Most sectors, barring material and real estate stocks, advanced. Defensive consumer staple and healthcare stocks saw marked strength, reflecting the tentativeness of traders. Monday’s rally took the S&P 500 Index to its highest level in over a month and the Nasdaq Composite Index failed to break above the levels seen in early October.

U.S. Indices' Performance on Monday
Index Performance (+/-)   Value
Nasdaq Composite +0.86%   10,952.61
S&P 500 Index +1.19%   3,797.34
Dow Industrials +1.34%   31,499.62

The four-year presidential cycle typically sees the best performance for the S&P 500 Index in the third year following the midterms, John Lynch, chief investment officer at Comerica said in a note.

“The two most likely outcomes of the midterm election suggest a combination of partisan control that have historically seen the S&P 500 climb at an average rate of 13.0%,” the analyst said.

Lynch said he holds onto the belief that the best strategy is to maintain long-term investment plans.

Here’s a peek into index futures trading:

U.S. Futures' Performance On Monday During Premarket Session
Index Performance (+/-)  
Nasdaq 100 Futures -0.15%  
S&P 500 Futures -0.35%  
Dow Futures -0.40%  
R2K Futures -0.47%  

In premarket trading on Monday, the SPDR S&P 500 ETF TrustSPY slipped 0.35% to $377.56 and the Invesco QQQ TrustQQQ fell 0.15% to $278.05, according to Benzinga Pro data.

On the economic front, the S&P Case-Shiller house price index for August is due at 9 a.m. EDT.

At 10 a.m. EDT, the Richmond Federal Reserve will release the results of its manufacturing survey for October. The Conference Board will also release its consumer confidence index for October around the same time, with economists widely expecting waning confidence among consumers, who make up two-thirds of the economic activity.

Federal Reserve Board Governor Christopher Waller is scheduled to make a public address at 1:55 p.m. EDT.

See also: Why This Market Analyst Expects Santa Claus Rally To Take S&P 500 Back To August High

Stocks In Focus:

Tesla, Inc. TSLA declined yet again in premarket trading while Twitter, Inc. TWTR pushed higher on deal hopes.

UBS Group UBS climbed about 4% in reaction to its quarterly results, while HSBC Holdings Plc. HSBC fell steeply after it said it set aside higher charges for bad debts.

SAP SE SAP rose about 3%, as the stock reacted to the software company’s financial results.

Chinese stocks were rebounding after Monday’s bloodbath. JD.com JD, Alibaba Group Holding Limited BABA and Pinduoduo, Inc. PDD were all higher.

General Motors Corp. GM, General Electric Co. GE, Biogen, Inc. BIIB, 3M Co. MMM, JetBlue Corp. JBLU and Coca-Cola Company KO are among the key companies reporting ahead of the market open.

Microsoft Corp. MSFT, Alphabet, Inc. GOOGL GOOG, Visa, Inc. V, Spotify Technology S.E. SPOT and Texas Instruments, Inc. TXN are due to report their results after the market close.

Commodities, Global Equity Markets:

Crude oil futures fell for a third straight session amid demand worries.

The Asia-Pacific markets had a mixed outing, although the Hong Kong and Chinese markets continue to be under pressure amid the political developments in China.

European stocks traded mixed as traders digested mixed earnings news flow from the region.

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