U.S. stock futures wavered while Treasury yields edged lower, as investors awaited manufacturing data and earnings from big-name companies including Google parent Alphabet.
Futures tied to the S&P 500 inched up 0.1% Tuesday, a day after the broad index rallied for a second consecutive day. Blue-chip Dow Jones Industrial Average futures were unchanged while contracts for the technology-heavy Nasdaq-100 edged up 0.3%.
rose over 8% in premarket trading after reporting a rise in quarterly profit. AT&T fell almost 6% premarket after it said it would cut its dividend and spin off its WarnerMedia division. In Switzerland,
rose over 7% after the bank lifted its financial targets and said it planned to buy back $5 billion in shares this year.
The yield on the benchmark 10-year Treasury note weakened Tuesday to 1.755% from 1.780% on Monday. Bond yields and prices move in opposite directions.
Investors are hoping that the broad turbulent trading seen in January—the S&P 500’s worst month since March 2020—is behind them. Markets slumped, led by technology stocks, as investors worried that the Federal Reserve was getting set to tighten policy just as economic growth was slowing.
The market’s losses have halted this week, while investors continue to assess the economic outlook.
“The chips do seem to be lining up for a bit of a rebound,” said
Seema Shah,
chief strategist at Principal Global Investors. “The market got ahead of itself with expectations of an economic slowdown. When we look at the economic data there is very little to suggest that we will see anything other than a slight softening.”
Investors are looking to earnings for clarity on how firms are coping with heightened inflation and lingering Covid-19. Alphabet is set to post earnings after the market closes, alongside
and
Data gauging activity in the manufacturing sector are due at 10 a.m. ET. The Institute of Supply Management numbers are expected to show factory activity continued to rise in January, but at a moderating pace.
…
Read More: Stock Futures Steady Ahead of Earnings, Manufacturing Data