US stock index futures showed standard indices holding at record levels as bond markets stabilized and traders awaited an accelerating flow of corporate earnings reports.
How to trade stock index futures
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S&P 500 futures ES00,
+0.01%
It was barely changed in 4881 -
Dow Jones Industrial Average Futures YM00,
-0.04%
It fell 21 points, or less, from 0.1% to 38,178 -
Nasdaq 100 Futures NQ00,
-0.03%
It fell 7 points, or 0%, to 17,451
The Dow Jones Industrial Average rose 138 points, or 0.36%, to 38,002, the Standard & Poor's 500 index increased 11 points, or 0.22%, to 4,850, and the Nasdaq Composite Index gained 49 points, or 0.32%, to 15,360.
What drives the markets?
Calmer conditions in the Treasury market — where 10-year yields appear to have found equilibrium, currently, around 4.1% — are allowing traders to focus more on the fourth quarter of the 2023 corporate earnings season.
The pace of announcements is poised to pick up speed in the next few days, hitting all-time highs next week, when about 23% of the S&P 500 will report their numbers.
Companies reporting results on Tuesday include Verizon VZ,
3M MMM,
general electric ge,
Johnson & Johnson JNJ,
and RTX RTX,
Before the opening bell rings on Wall Street, followed after the closing by Netflix NFLX,
texas instruments txn,
Baker Hughes BKR,
With the Dow Jones Industrial Average and S&P 500 hitting record highs, and the tech-heavy Nasdaq Composite index jumping 18% in just the past three months, investors will be eager to see the company's earnings support the markets at current levels.
Investors are becoming more optimistic about the health of the U.S. economy and are hopeful that upcoming earnings reports will signal an AI boom for tech companies, according to Stephen Innes, managing partner at SPI Asset Management.
“Technology profits and corporate direction are critical factors to continue driving Mega Tech's fees,” Innes said.
Helping to support sentiment on Tuesday were signs of a possible rebound in Chinese stocks after a report that Beijing was considering creating a $287 billion stabilization fund.
Hong Kong's Hang Seng Index (HK:HSI) rebounded 2.6% from its lowest closing level since October 2022, while the Shanghai Composite Index (CN:SHCOMP) rose from its lowest level in almost four years. iShares MSCI China ETF MCHI,
Which has fallen by 11.9% since the beginning of the month, and rose by 1.3% in pre-market trading in the United States.
US economic updates scheduled for Tuesday include the Richmond Fed's January index, scheduled for 10 a.m. ET.
The US Treasury will auction $60 billion in two-year bonds at 1 p.m
