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U.S. equity futures were mixed in early Tuesday trading, while Treasury yields and the dollar held steady, as investors shifted focus from domestic political risks to corporate earnings ahead of an active slate of bluechip reports over the coming days.
Stocks closed higher across the board last night, with the Dow Jones Industrial Average snapping a two-session losing streak, as investors unwound some of last week’s ‘Trump trade’ by bidding up megacap tech stocks and buying U.S. Treasury bonds.
The emergence of Vice President Kamala Harris as the Democratic frontrunner, seen as a more formidable challenge to former President Donald Trump, allowed for some of that reversal on Monday, as did a muted reaction from the market’s benchmark volatility gauge, the CBOE Group’s VIX index.
Related: Stock sentiment resets after tech pullback
Harris, who has likely gathered enough support from senior delegates to secure the Democratic Party’s official nomination, will appear at her first campaign rally later today in Wisconsin.
“Tonight, I am proud to have secured the broad support needed to become our party’s nominee, and as a daughter of California, I am proud that my home state’s delegation helped put our campaign over the top,” Harris said in a statement.
Spencer Platt/Getty
Attention now is likely to shift to the busy morning slate of corporate earnings, which includes updates from United Parcel Service (UPS) , General Motors (GM) , Coca Cola (KO) and Comcast (CMCSA) .
Magnificent 7 tech giants Google (GOOGL) and Tesla (TSLA) will report after the bell.
Around 134 S&P 500 companies will report second quarter earnings this week, with analyst looking for collective profits for the benchmark to rise 11.1% from last year to $496.7 billion.
In the bond market, Treasury yields were steady ahead of a $69 billion auction of 2-year notes later in the session, with benchmark 2-year paper trading at 4.504% and 10-year notes pegged at 4.226%.
The U.S. dollar index, which tracks the greenback against a basket of six global currencies, was marked 0.03% higher at 104.342.
On Wall Street, futures tied to the S&P 500, which is up 1.9% for the month, suggest a modest 15 point opening bell gain for the benchmark, with the Dow called 57 points higher at the start of trading.
The tech-focused Nasdaq, meanwhile, is priced for a 10 point decline thanks in part to modest premarket declines for Nvidia (NVDA) and Apple (AAPL) .
Related: Analyst puts Nvidia stock on watch; report points to new China chip
UPS shares tumbled 8.05% in premarket after the package delivery group posted weaker-than-expected second quarter earnings of $1.79 per share amid weakening demand and higher staffing costs.
General Electric (GE) shares jumped 2.4% after a mixed set of second quarter earnings supported by solid aerospace orders and a boost to its full-year profit and cashflow forecasts.
More Wall Street Analysts:
- Analyst revisits Nvidia stock price target after Blackwell checks
- Analysts prescribe new Walgreens stock price targets after earnings
- Analyst revises Facebook parent stock price target in AI arms race
In overseas markets, Europe’s Stoxx 600 was marked 0.35% higher in Frankfurt, with Britain’s FTSE 100 rising 0.28% in London, on a busy day for bank earnings in the region.
Overnight in Asia, Japan’s Nikkei 225 was little-changed on the session, falling 0.012% into the close, while the region-wide MSCI ex-Japan benchmark gained 0.34%.
Related: Veteran fund manager sees world of pain coming for stocks
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