U.S. stock futures wavered on Tuesday as investors awaited a spate of corporate earnings and braced for key macroeconomic catalysts in the coming days, including a Federal Reserve interest-rate decision due Wednesday.
In focus Tuesday will be Amazon.com earnings alongside results from Eli Lilly, McDonald’s, Starbucks, and others. On the economic data front, U.S. releases include the first-quarter employment cost index, the S&P Case-Shiller home price index for February, and consumer confidence for April—all of which are really a warm-up for Friday’s key U.S. jobs report.
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By
Jack Denton, Dow Jones Newswires
(Dreamstime)
U.S. stock futures wavered on Tuesday as investors awaited a spate of corporate earnings and braced for key macroeconomic catalysts in the coming days, including a Federal Reserve interest-rate decision due Wednesday.
Futures for the Dow Jones Industrial Average fell 44 points, or 0.1%, after the index advanced 146 points on Monday to close at 38,386. S&P 500 futures shed 0.2% as did those on the tech-heavy Nasdaq. The yield on the benchmark 10-year U.S. Treasury note ticked up above 4.63%.
The outlook for inflation and the Fed’s path on rates remains a dominant narrative for markets, spotlighting the central bank’s two-day monetary policy meeting starting today and culminating in a decision and press conference on Wednesday. More immediately, investors have much to chew on from corporate earnings with almost 200 companies in the S&P 500 reporting results this week.
“Markets got the week off to a decent start yesterday, with the S&P 500 building on last week’s advance as we await the Fed’s decision tomorrow and an array of earnings releases,” said Jim Reid, a strategist at Deutsche Bank.
In focus Tuesday will be Amazon.com earnings alongside results from Eli Lilly, McDonald’s, Starbucks, and others. On the economic data front, U.S. releases include the first-quarter employment cost index, the S&P Case-Shiller home price index for February, and consumer confidence for April—all of which are really a warm-up for Friday’s key U.S. jobs report. While earnings or data could shift the needle on sentiment, the focus remains on the Fed decision and jobs report later this week.
“Sharp gains may be held back, with a little more caution creeping in as the key meeting at the Federal Reserve starts,” said Susannah Streeter, an analyst at broker Hargreaves Lansdown. “Key inflation readings show inflation remains stubborn and that’s dashed hopes for early and multiple rate cuts.”
A wave of releases across the Atlantic could impact sentiment early Tuesday as inflation and growth worries remain salient both in the U.S. and Europe. Euro zone consumer-price index (CPI) inflation data for April are due along with first-quarter gross-domestic product (GDP).
