US Stocks On Track To Open Higher As Nasdaq, S&P 500 Futures Spike With Hopes Pinned On Fed — Tesla, AMD, Pfizer, MicroStrategy, Chinese Stocks In Focus

U.S. index futures are pointing to higher open on Wall Street on Tuesday amid expectations that the Fed will slow down its pace of rate hikes and also use dovish language.

On Monday, stocks pulled back as traders took some profit off the table after the past week’s strong advance. Notwithstanding the decline, the Dow recorded its best month since 1976.

For the month, the Nasdaq Composite, S&P 500 and Dow gained 3.9%, 7.99% and 13.95%, respectively.

While noting that October was the best month overall since 1976, Carson Group’s Ryan Detrick said the huge October for the Dow could mean more gains in the coming months.

The Dow was up 14.0% in October, for the best October ever.

Best month overall since January 1976.

Since WWII, third best month.

Since WWII, 11 other times >10%. A year later up another 15.9% on average. pic.twitter.com/fcUN1dLRmp

— Ryan Detrick, CMT (@RyanDetrick) October 31, 2022

A peek into index futures trading:

In premarket trading on Tuesday, the SPDR S&P 500 ETF Trust SPY rose 0.89% to $389.63 and the Invesco QQQ Trust QQQ climbed 1.09% to $280.99, according to Benzinga Pro data.

On the economic front, S&P Global’s U.S. manufacturing purchasing managers’ index for October is due at 9:45 a.m. EDT. The index is widely expected to remain unchanged at the previous month’s level of 49.9.

At 10 a.m. EDT, the Institute for Supply Management will release its manufacturing purchasing managers’ index, also for October.

Around the same time, the Commerce Department will release its construction spending report for September. On a month-over-month, construction spending is expected to have dropped yet again, albeit at a slower pace.

At 11:30 a.m. EDT, the Treasury will auction 52-week bills.

See also: Bearish On Advanced Micro Devices, Semiconductor Stocks? This Bear ETF Is Showing Signs Of Strength

Stocks In Focus:

• Pinduoduo, Inc. PDD, JD.com JD and Alibaba Group Holding, Inc. BABA bounced back strongly in premarket trading.
• Nio, Inc. NIO, XPeng, Inc. XPEV and Li Auto, Inc. LI shares jumped following the release of their October deliveries reports.
• Tesla, Inc. TSLA traded over 2% higher as the Twitter deal overhang lifts.
• Abiomed, Inc. ABMD shares soared after it agreed to be acquired by Johnson & Johnson JNJ.
• Eli Lilly & Co. LLY, Uber Technologies, Inc. UBER, Fox Corporation FOXA, Marathon Oil Corp. MRO, Pfizer, Inc. PFE, Molson Coors Beverage Company TAP and Louisiana-Pacific Corporation LPX are among the notable companies reporting their quarterly results ahead of the market open.
• Advanced Micro Devices, Inc. AMD, Clorox Company CLX, Electronics Arts, Inc. EA, MicroStrategy, Inc. MSTR and Yum China Holdings, Inc., YUM are scheduled to report after the market close.

Commodities, Other Global Equity Markets:

Crude oil futures were bouncing back after two straight sessions of decline and inched close to the $88-a-barrel mark, as the dollar has weakened in anticipation of a dovish stance from the Fed.

The Asia-Pacific markets broadly advanced, with Hong Kong’s Hang Seng leading the charge with a gain of over 5%. The Malaysian, Indonesian and New Zealand markets pulled back.

European stocks picked up momentum from the start, encouraged by positive earnings reports, including those from BP plc. BP and the Fed optimism. In late-morning trading, the major averages in the region were notably higher.

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