Stocks slipped ahead of the bell on Tuesday, as investors weighed the first in a flood of earnings and eyed the prospects for a US breakthrough in the Israel-Hamas conflict.
Dow Jones Industrial Average (^DJI) futures were down 0.2%, after finishing Monday with gains. Contracts on the S&P 500 (^GSPC) and the tech-heavy Nasdaq 100 (^NDX) shed around 0.3%.
Bank of America (BAC) reported a 10% rise in profit, echoing last week’s strong showing by peers last week, Goldman Sachs (GS) is another highlight in Tuesday’s third-quarter reports, with Lockheed Martin (LMT), Johnson & Johnson (JNJ) and United Airlines (UAL) also on the docket.
Earnings season is still in its early days, but there are already encouraging signs that Corporate America could be seeing an end to the recent earnings recession. Tesla (TSLA) and Netflix (NFLX) lead out tech sector results on Wednesday, giving more insight into the toll taken from higher borrowing costs.
Read more: What a Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards
Meanwhile, the Middle East conflict still weighed on the market as investors assessed the chances of it breaking out into wider war. The rising geopolitical tensions in the Middle East could drive a global recession, leading investors have warned.
News that President Joe Biden plans to visit Israel on Wednesday, then travel to Jordan. That has eased some worries driven by a looming Israeli ground offensive on Gaza, seen as a red line for its Arab neighbors.
Oil prices steadied as the US intensified its diplomatic efforts, and as hopes grew that the US will ease sanctions on producer Venezuela. Crude oil futures (CL=F) held above $86 a barrel, while Brent crude futures (BZ=F) traded at almost $90 a barrel.
In an otherwise quiet week for economic data, a September retail sales report is expected to show slight growth when it is released on Tuesday. Recent indicators have encouraged the market to bet that the Federal Reserve won’t raise interest rates at its November meeting.
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KStock futures fall as earnings season picks up pace
The major Wall Street stock gauges pointed lower Tuesday as reports from Bank of America and Johnson & Johnson got the week’s stream of earnings under way.
Futures on the Dow Jones Industrial Average (^DJI) were down 0.18%, or 61 points, while S&P 500 (^GSPC) futures shed 0.23%. Contracts on the tech-heavy Nasdaq 100 (^NDX) were 0.27% lower.
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Barbara Terrio is a seasoned business journalist, delving into the world of finance, startups, and entrepreneurship. With a knack for demystifying complex economic trends, she helps readers navigate the business landscape. Outside of her reporting, Barbara is an advocate for financial literacy and enjoys mentoring aspiring entrepreneurs.
