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Stock futures were mixed Tuesday as several big banks and other notable companies reported quarterly results, with shares of memory chip makers falling for a second straight day on worries about Chinese competition.
Dow Jones Industrial Average and S&P 500 futures pointed 0.7% and fractionally higher, respectively, while Nasdaq 100 futures were 0.5% lower. Dow futures were aided by a rise in shares of UnitedHealth Group (UNH), which lifted its full-year profit guidance following a better-than-expected third quarter.
Yesterday, the tech-focused Nasdaq Composite and benchmark S&P 500 finished down a respective 0.4% and 0.1%, while the blue-chip Dow advanced 0.3%.
Earnings season kicks into high gear today with several big banks—JPMorgan Chase (JPM), Goldman Sachs (GS), Wells Fargo (WFC), and Citigroup (C)—and the likes of Johnson & Johnson (JNJ) reporting results before the bell.
Memory stocks headed lower for a second straight day after Chinese firm CXMT said over the weekend it plans on producing next-generation chips. Micron Technology (MU), Sandisk (SNDK), Seagate Technology (STX), and Western Digital (WDC) were down 2% to 4% premarket following Monday declines. Roundhill’s Memory ETF (DRAM) was 3.5% lower after a nearly 4.5% pullback yesterday, and the broader iShares Semiconductor ETF (SOXX) was headed a further 1% lower after falling 2.5% Monday.
Meta Platforms (META) stock slipped 0.5% before the bell following a nearly 3.5% rise. The Roundhill Magnificent Seven ETF (MAGS), which tracks the group of seven mega-cap tech stocks, edged 0.3% lower after rising modestly yesterday.
After the U.S. bond market was closed yesterday in observance of Columbus Day, the 10-year Treasury yield pulled back four basis points from Friday’s close to around 5.20%. Last Thursday, it briefly neared 5.37%, its highest level in more than 24 years.
Oil prices pulled back Tuesday, as investors weighed a diesel supply increase following President Donald Trump’s controversial decision to temporarily ease restrictions on Russian energy against continued attacks on Saudi Arabia from Houthi rebels in neighboring Yemen. U.S. benchmark West Texas Intermediate crude futures declined 2% to $91.85 a barrel, while front-month Brent crude futures, the international benchmark, fell 2% to around $104.50.
Bitcoin was trading around $83,400, up from overnight lows below $81,000. The U.S. dollar index, which tracks the value of the greenback against a basket of foreign currencies, declined 0.3% to 102.33. Gold futures rose 0.4% to $4,210 an ounce.
Investors’ focus will turn to inflation readings the next two days, with the September Consumer Price Index reading tomorrow and the wholesale Producer Price Index on Thursday.
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