U.S. stock-index futures pointed to a modestly higher open on Tuesday, suggesting major indexes could snap a string of losses as strong corporate earnings underpin equities.
Tech stocks were likely to be in particular focus following blowout results from Alphabet, the parent company of Google and one of the largest companies in the market.
What are the main benchmarks doing?
Dow Jones Industrial Average futures YMU8, +0.42% rose 125 points, or 0.5%, to 25,158, while S&P 500 futures ESU8, +0.25% gained 7 points, or 0.2%, to 2,819. Nasdaq-100 futures NQU8, +0.21% inched up 14.75 points, or 0.2%, to 7,445.38.
On Monday, the Dow slipped 13.83 points to 25,044.29, marking a third straight loss for the index, its worst losing streak since an eight-session slide that ended June 21, according to FactSet data. The S&P 500 index gained 0.2% to 2,806.98, while the Nasdaq Composite rose 0.3% to 7,841.87.
What’s driving the markets?
Earnings news will likely dominate the action for Tuesday as the busiest week of the season gets under way. Shares of Alphabet GOOGL, +1.10% jumped 4% in premarket trading a day after it reported results that topped expectations.
Read: Google is a great investor, and Alphabet earnings are showing the results
Alphabet is one of the so-called FAANG group of stocks that have fueled the overall market’s advance over the past several years, including thus far in 2018. The results could provide comfort that the quintet of huge internet and technology stocks still have room to run. Two other FAANG components, Facebook and Amazon, are scheduled to report later this week.
Read: Earnings Watch: 35% of S&P 500 companies set to report in a crazy week
Also read: Facebook earnings: Amid controversy, finances appear bulletproof
Issues surrounding trade will likely also remain in focus, particularly after President Donald Trump tweeted that tariffs are “the greatest.” Escalating tensions between the U.S. and its major trading partners have been a major concern of investors of late, amid fears that the situation could evolve into a full-blown trade war.
See: The ‘significant damage’ a U.S.-China trade war could do to the global economy — in one chart
Among economic data for Tuesday, the flash Markit manufacturing and services purchasing managers indexes for July, due at 9:45 a.m. Eastern.
Investors were also weighing up the possibility of new stimulus from China, after the country’s State Council outlined measures aimed at boosting domestic consumption, such as corporate tax cuts and support for small businesses.
Chinese bond yields also rose a day after U.S. Treasurys and sovereign bonds got a lift from news reports the Bank of Japan could be ready to adjust its monetary policy approach at its next meeting. The yield on the 10-year U.S. Treasury note TMUBMUSD10Y, +0.09% was holding steady at 2.96%.
Read: This selloff in U.S. government debt will prove short-lived, Morgan Stanley says
What stocks are in focus?
Biogen Inc. BIIB, -0.16% jumped 4% in premarket trading after it posted adjusted second-quarter earnings that easily beat expectations, along with revenue that handily topped forecasts.
3M Co. MMM, -1.54% rose 2.3% before the bell after the Dow conglomerate reported better-than-expected earnings and revenue and raised its outlook.
United Technologies Inc. UTX, -0.68% gained 1.5% in premarket trading after it reported second-quarter earnings and sales that topped analyst forecasts. It also raised its outlook. The stock could provide one of the biggest boosts to the Dow.
Kimberly-Clark Corp. KMB, +0.73% fell 2.6% before the bell after it reported second-quarter revenue that missed expectations and issued a profit warning.
Lockheed Martin Corp. LMT, -1.31% rose 1.4% in premarket trading after the defense contractor reported second-quarter earnings and sales that came in ahead of expectations. It also raised its outlook.
Harley-Davidson Inc. HOG, -0.41% rose 1.1% before the bell. The motorcycle company reported adjusted second-quarter earnings that beat expectations, along with stronger-than-expected revenue.
Eli Lilly & Co. LLY, +0.46% surged 6.6% in premarket trading, a rally that put it on track to open at its highest level since January 2001. The gains came after its second-quarter results came in well above expectations.
JetBlue Airways Corp. JBLU, -0.15% reported adjusted second-quarter earnings that beat expectations.
Whirlpool Corp. WHR, -0.72% shares fell 10% in premarket after the appliance maker surprised by swinging to a quarterly loss with lower sales and a downbeat outlook on revenue.
U.S.-listed shares of Swiss banking group UBS Group AG UBS, +0.91% UBSG, +2.98% rose 2.5% in premarket, after a forecast-beating profit rise. U.S. listed shares of Credit Suisse AG CS, +1.18% CSGN, +2.15% rose by a similar amount.
Read: IPO market braces for 11 deals, including a $1.5 billion deal from China’s Pinduoduo
Shares of FCB Financial Holdings Inc. FCB, +1.20% dropped 4.6% in premarket trade Tuesday, after the Florida-based community bank announced a deal to be bought, at a discount to Monday’s closing price, by Synovus Financial Corp. SNV, +0.93%
What are other markets doing?
European stocks SXXP, +0.84% moved higher, led by gains for UBS and other banks, while Asian stocks pushed higher, rebounding from losses a day earlier.
The U.S. dollar was holding steady, while gold prices GCQ8, +0.20% were also flat, and oil CLU8, +0.68% was up about 0.5% to $68.21 a barrel.