Nasdaq, S&P, Dow futures ticks up as big corporate earnings, Fed decision loom (SPX)

The major market averages trade higher on Tuesday, as investors are waiting for some big corporate earnings and the start of the Federal Reserve’s policy decision meeting.

The S&P 500 (SP500) was +0.2%, the Nasdaq Composite (COMP:IND) was near flat, and the Dow (DJI) was +0.4%.

The 10-year Treasury yield (US10Y) was near even at 4.17%. At the same time, the 2-year yield (US2Y) was down 1 basis point to 4.39%.

Wall Street’s major market averages ended in a muted fashion on Monday.

“Equities had muted days on both sides of the Atlantic,” Deutsche Bank’s Jim Reid said.

“The notable theme was a reversal of the recent rotation trade, with the small cap Russell 2000 down, while the Magnificent 7 posted a second consecutive gain thanks to a rebound from Tesla,” Reid added.

Microsoft (MSFT) is set to report its quarterly report today after market close.

On the earnings side, PayPal (PYPL) boosted its 2024 earnings and buyback guidance after strong Q2 beat.

Pfizer (PFE) raised its annual earnings outlook.

The Fed’s two-day policy meeting is expected to begin today, with the decision to come in tomorrow. It is widely expected that the Fed will hold rates steady, but traders will keep a close watch to gather any hints about the possibility of a cut in the next couple of months.

FHFA House Price Index unexpectedly showed no growth in May, while home price growth eased less than expected in the same month.

On the economic front, U.S. consumer confidence rose to 100.3 in July, versus the 99.7 consensus level, from 97.8 in June (revised from 100.4), the Conference Board said on Tuesday.

At the same time, the June JOLTS job openings report rose more than expected for the month and quit rates stayed unchanged.