U.S. stocks could see a weak opening on Tuesday after the averages registered a mixed last week. While the S&P 500 and Dow Jones snapped their six-week winning streak, the Nasdaq Composite chalked its seventh straight week of gains.
Earning news flow will continue to pick up momentum in the coming days, with five of the seven “Magnificent 7” companies all set to post their earnings this week – this includes Apple Inc. AAPL, Microsoft Corp. MSFT, Alphabet Inc. GOOG GOOGL, Meta Platforms Inc. META, and Amazon.com Inc. AMZN.
| Futures | Performance (+/-) |
| Nasdaq 100 | 0.05% |
| S&P 500 | -0.04% |
| Dow Jones | -0.10% |
| R2K | -0.39% |
In premarket trading on Monday, the SPDR S&P 500 ETF Trust SPY fell 0.07% to $580.44 and the Invesco QQQ ETF QQQ edged up by 0.03% to $495.54, according to Benzinga Pro data.
Cues From Last Session:
The Dow Jones ended its five-day losing streak on Monday, closing the day up by 0.65%. Nasdaq Composite continued to surge in the run-up to five of the seven earnings from "Magnificent 7" stocks this week.
Crude oil prices recovered slightly after tumbling over the weekend due to simmering tensions in the Middle East and Israel's missile strikes in Iran.
Treasury yields continued to rise, signaling concerns that regardless of who wins the elections, the next administration might struggle with fiscal discipline. This sentiment was further exacerbated by the International Monetary Fund's warnings on the long-term trajectory of the U.S. national debt.
On the economic data front, the Federal Reserve Bank of Dallas’ general business activity index for manufacturing in Texas rose to -3 in October compared to a reading of -9 in September.
All the three major indices surged on Monday.
| Index | Performance (+/-) | Value |
| Nasdaq Composite | 0.26% | 18,567.19 |
| S&P 500 | 0.27% | 5,823.52 |
| Dow Jones | 0.65% | 42,387.57 |
| Russell 2000 | 1.63% | 2,244.07 |
Insights From Analysts:
Sam Stovall, chief investment strategist at CFRA Research, told CNBC in an interview that the overall earnings season could exceed expectations.
"I obviously would not be surprised if this ends up being 60th out of the last 62 quarters in which the actual results exceed end-of-quarter estimates," Stovall said.
On a possible post-election relief rally, Stovall said, "Historically, the market does breathe a sigh of relief."
Explaining the ongoing bull market, WisdomTree and Wharton School economist Jeremy Siegel pointed to the rally in the tech sector, with Tesla Inc. TSLA leading the charge.
"The tech sector remains the biggest mover, led by companies like Tesla, which continues to defy gravity thanks to its strong positioning in EVs and autonomous driving technology."
Talking about a possible re-election of former President Donald Trump, Siegel said, "A Republican sweep—where the GOP gains control of both the Senate and House—could lead, at least temporarily, to an increased fear of higher deficits, causing bond yields to move up significantly."
See Also: How To Trade Futures
Upcoming Economic Data
Tuesday's economic calendar is fairly light.
- Retail (ex-auto) and wholesale inventories data will be released at 8:30 a.m. ET.
- S&P Case-Shiller home price index will be released at 9 a.m. ET.
- Consumer confidence index will be released at 10 a.m. ET.
- Job openings data will be released at 10 a.m. ET.
Stocks In Focus:
- Ford Motor Co. F shares fell by nearly 5.5% in premarket trading after the automaker cut revenue and profit guidance.
- McDonald's Corp. MCD shares fell nearly 2% in premarket trading after the fast food giant reported a higher-than-expected fall in global sales.
- Trump Media & Technology Group Corp. DJT shares soared nearly 13% following Trump's rally at Manhattan's Madison Square Garden over the weekend.
- Boeing Co. BA priced its offering at $143 per share, with 112.5 million shares up for purchase.
- Coinbase Global Inc. COIN shares surged 3.4% after Bitcoin BTC/USD crossed the $71,000 mark.
- Earnings from Alphabet Inc., Advanced Micro Devices Inc. AMD, Visa Inc. V, and Pfizer Inc. PFE will be on investors' radar on Tuesday.
Commodities, Bonds And Global Equity Markets:
Crude oil futures edged up in the early New York session, rising by 1% after tumbling over 6% during the weekend.
The 10-year Treasury note yield surged to 4.292%.
Major Asian markets ended mixed on Tuesday, while European stocks showed strength in early trading.
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