US pre-open: Stocks seen higher as Q3 earnings roll in
US futures pointed to a firmer open on Wall Street on Tuesday as investors braced for more earnings releases.
At 1245 BST, Dow Jones Industrial Average futures were up 0.4%, while S&P 500 and Nasdaq futures were 0.1% higher.
Oanda analyst Craig Erlam said: “While there is always the potential for market pullbacks or even corrections, I don’t think we can read too much into Monday’s declines, especially given the long and gradual rally that preceded it and the size of the losses registered. I think what we saw Monday was simply some profit taking and now we’ll see just how bullish investors are at the moment by how quickly and aggressively the dips are seized on. Index futures suggest we won’t have to wait very long at all.”
“As will remain the case for much of the week, the main driver for equity market sentiment will be company earnings today with 42 S&P 500 companies scheduled to report on the third quarter. This includes the likes of Caterpillar, 3M, United Technologies and McDonald’s, all of which are also components of the Dow and three of which will report before the open, which could drive sentiment early in the session. We’ll also get flash services and manufacturing PMI surveys from the US shortly after the open which could help guide sentiment.”
Markit’s manufacturing and services PMIs are due at 1445 BST.
On the corporate front, JetBlue was likely to be in focus after its third-quarter earnings, while 3M was higher in pre-market trade after posting an 8% jump in third-quarter profit.
General Motors said on Tuesday that earnings per share for the third quarter came in at $1.32, beating analysts’ expectations of $1.12, while Lockheed Martin’s third-quarter earnings missed expectations, but the aerospace group lifted its outlook.
Caterpillar rose sharply after better-than-expected Q3 earnings, with EPS of $1.77 versus, while Whirlpool could be in for a bumpy ride after cutting its full-year earnings guidance late on Monday.