U.S. stock-index futures pointed higher Tuesday, extending gains after the largest four-day stretch of gains since late July for both the S&P 500 and Nasdaq Composite.
What’s are major indexes doing?
Futures on the Dow Jones Industrial Average
rose 133 points, or 0.4%, to 35,266.
S&P 500 futures
gained 17.25 points, or 0.4%, to trade at 4,494.75.
were up 48 points, or 0.3%, to 15,338.50.
On Monday, the Dow Jones Industrial Average
edged down 0.1%, while the S&P 500
rose 0.3% and the Nasdaq Composite
advanced 0.8%. The S&P 500 and Nasdaq Composite have each seen their best four-day winning stretch since July 23.
What’s driving the market?
The positive backdrop for equities comes as good corporate earnings have largely overshadowed worries about supply chain disruptions.
According to Bank of America, through the first week, 66% of companies beat Wall Street forecasts on both sales and earnings per share, which is well above the historical average of 47%.
“It seems that better-than-expected earnings results from big U.S. banks last week encouraged some market participants to start this week by increasing their risk exposure, as they may have become somewhat more optimistic for the rest of the season,” said Charalambos Pissouros, head of research at JFD Group, in a note.
Tuesday has already seen results from Dow components Procter & Gamble Co.
and Johnson & Johnson
while streaming giant Netflix Inc.
is due to report after the closing bell.
Investors are also eyeing the launch of the first bitcoin exchange-traded fund, and the flattening of the yield curve, as the spread between 5-
Treasury securities was the narrowest since early 2020.
U.S. home builders started construction on homes at a seasonally-adjusted annual rate of 1.56 million in September, representing a 1.6% decrease from the previous month, the U.S. Census Bureau reported Tuesday. Permitting for new homes occurred at a seasonally-adjusted annual rate of 1.59 million, down 7.7% from August. Economists had expected housing starts to occur at a pace of 1.61 million and building permits to come in at a pace of 1.67 million.
Several Federal Reserve officials are due to speak Tuesday.
Bitcoin BTCUSD was up 0.4% at $62,179, trading near an all-time high. The first U.S. bitcoin futures exchange-traded fund from ProShares is set to begin trading on the New York Stock Exchange Tuesday under the ticker BITO.
Which companies are in focus?
- Johnson & Johnson shares edged higher in premarket trade after the drugmaker said it brought in $502 million in world-wide sales of its COVID-19 vaccine in the third quarter of 2021.
- Shares of Procter & Gamble fell 2% after the consumer packaged goods company reported fiscal first-quarter profit that fell versus last year, but topped forecasts for earnings and sales while maintaining its full-year guidance.
Insurer Travelers Cos. Inc.
also a Dow component, delivered results that beat estimates. Shares were up 2%.
Shares of Tesla Inc.
edged higher, on track to seek a seventh straight gain a day before it was slated to report third-quarter results. The stock has rallied 10.8% over the past six sessions, closing Monday at its highest price since Feb. 2, and just 1.5% below the Jan. 26 record close of $883.09.
Philip Morris International Inc.
shares declined 2% after the cigarette and tobacco company reported third-quarter profit and revenue that rose above expectations as overall shipment volume increased.
Shares of Kansas City Southern
fell 1% after the railroad operator reported third-quarter profit that fell short of expectations.
What are other markets doing?
The yield on the 10-year Treasury note
rose 0.6 basis point to 1.588%. Yields and debt prices move in opposite directions.
The ICE U.S. Dollar Index
a measure of the currency against a basket of six major rivals, fell 0.4%.
Oil futures rose, with the U.S. benchmark
up 1% at $82.51 a barrel. Gold futures
also moved higher, up 1% at $1,782.70 an ounce.
The Stoxx Europe 600
edged 0.2% higher, while London’s FTSE 100
was up 0.1%.
The Shanghai Composite
rose 0.7%, while the Hang Seng Index
gained 1.5% in Hong Kong. Japan’s Nikkei 225