As earnings season begins, S&P 500 futures hit record highs.
U.S. stock index futures showed benchmarks holding at record levels as bond markets stabilized and traders accelerated the flow of corporate earnings reports.
How does stock index futures trading work?
S&P 500 Futures ES00
Little has changed from 4881.Dow Jones Industrial Average Futures YM00
It fell 21 points (less than 0.1%) to 38178.Nasdaq-100 Futures NQ00
17451, down 7 points (0%)
On Monday, the Dow Jones Industrial Average
The S&P 500 rose 138 points, or 0.36%, to 38002.
The Nasdaq composite index rose 11 points (0.22%) to 4850.
It rose 49 points (0.32%) to 15360.
What is driving the market
Calm conditions in the Treasury market, with the 10-year Treasury yield now appearing to have balanced out at around 4.1%, have allowed traders to focus more on the fourth quarter 2023 corporate earnings season.
The pace of releases is expected to accelerate in the coming days, with about 23% of the S&P 500 expected to release numbers next week.
Companies reporting results on Tuesday include Verizon VZ.,
3MMM,
General Electric GE,
Johnson & Johnson JNJ
and RTX RTX
Before the opening bell rings on Wall Street, after the closing bell, Netflix NFLX,
Texas Instruments TXN
Baker Hughes BKR.
With the Dow Jones Industrial Average and S&P 500 hitting record highs and the tech-heavy Nasdaq Composite rising 18% over the past three months, investors will want to see if company profits support the market at current levels. no see.
Investors have become more optimistic about the health of the U.S. economy and expect upcoming earnings reports to signal an AI boom for technology companies, according to Stephen Innes, managing partner at SPI Asset Management.
“Technology revenue and corporate guidance are critical to continuing to drive Mega Tech forward,” Innes said.
Helping sentiment on Tuesday were signs that Chinese stocks could face an early bounce after reports that the country was considering a $287 billion stabilization fund.
Hang Seng in Hong Kong
It rebounded 2.6% from the lowest since October 2022, and the Shanghai Composite Index rebounded 2.6%.
I hit rock bottom after almost 4 years. iShares MSCI China ETF
,
It’s down 11.9% so far this month but up 1.3% in U.S. premarket trading.
U.S. economic updates scheduled for Tuesday include the January Richmond Fed index, due at 10 a.m. ET.
The U.S. Treasury plans to auction $60 billion worth of two-year Treasury bonds at 1 p.m.
