The major U.S. index futures point to a lower open on Wednesday, with tech stocks on track to see marked weakness, following Alphabet, Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT) and the likes giving disappointing quarterly reports.
Tuesday, the market extended the upward momentum, encouraged by the earnings news flow, a pullback in bond yields and a few weak economic readings that were seen as strengthening the case for a letup in Fed’s aggressive stance toward interest rates.
All three major averages are now at their highest level in about a month.
Consumer confidence rose less than expected in October and the S&P CoreLogic Case-Shiller’s house price survey showed a deceleration in growth in August.
All but energy stocks advanced in the session, with real estate, material and communication services rallying strongly.
| Index | Performance (+/-) | Value | |
|---|---|---|---|
| Nasdaq Composite | +2.25% | 11,199.12 | |
| S&P 500 Index | +1.63% | 3,859.11 | |
| Dow Industrials | +1.07% | 31,836.74 |
Here’s a peek into index futures trading:
| Index | Performance (+/-) | |
|---|---|---|
| Nasdaq 100 Futures | -1.55% | |
| S&P 500 Futures | -0.65% | |
| Dow Futures | -0.08% | |
| R2K Futures | +0.25% |
In premarket trading on Wednesday, the SPDR S&P 500 ETF Trust(NYSE:SPY) declined 0.66% to $382.37 and the Invesco QQQ Trust(NASDAQ:QQQ) plunged 1.52% to $279.89, according to Benzinga Pro data.
On the economic front, the Mortgage Bankers Association’s mortgage application volume data is due at 7 a.m. EDT.
The Commerce Department is scheduled to release its new home sales data for September at 10 a.m. ET. Economists, on average, look for a 13.8% month-over-month drop in new home sales for the month.
The Energy Information Administration will release the crude oil inventory report for the week ended Oct. 21 at 10:30 a.m. EDT.
The Bank of Canada is due to announce its rate decision at 10 a.m. EDT, with consensus calling for a 75-basis point hike to a 14-year high of 4% to take on stubbornly high inflation.
See also: Why This Market Analyst Expects Santa Claus Rally To Take S&P 500 Back To August High
Stocks In Focus:
- Alphabet’s shares sank in premarket trading after its third-quarter results missed expectations and the company hinted at a further slowdown in the December quarter. (Read Why Some Analysts Remain Bullish)
- Microsoft fell over 6% despite the software giant's quarterly results topping expectations. The weakness could be traced back to weak Cloud results and disappointing forward guidance.
- Spotify Technology S.A. (NYSE:SPOT) dropped about 5.5% after the music streaming service disclosed a wider-than-expected loss for the third quarter.
- Texas Instruments, Inc. (NASDAQ:TXN) moved down over 5% on earnings.
- Shares of footwear and apparel retailer Skechers U.S.A, Inc. (NYSE:SKX) plunged over 13% on a third-quarter miss.
- AstraZeneca plc (NASDAQ:ANZ) rallied on positive mid-stage breast cancer drug data.
- Boeing Company (NYSE:BA), Bristol-Myers Squibb Co. (NYSE:BMY), Kraft Heinz Company (NASDAQ:KHZ), Norfolk Southern Corp. (NYSE:NSC) and General Dynamics Corp. (NYSE:GD) are among the notable companies releasing their quarterly results.
- Ford Motor Co. (NYSE:F) and Meta Platforms, Inc. (NASDAQ:META) are among the keenly awaited earnings scheduled to be released after the close.
Commodities, Other Global Equity Markets:
Crude oil futures rose, adding to the moderate upside seen on Tuesday. A barrel of WTI-grade crude oil traded north of $85.60 a barrel.
Stocks in the Asia-Pacific region advanced on Wednesday, taking cues from the positive close on Wall Street overnight and amid profit-taking following the strong sell-off seen in some of the markets. The Indian market remained closed for a public holiday.
The major European market opened Wednesday’s session on a mixed note and saw volatility in early trading. Sentiment continued to be mixed in late-morning deals, as traders digested corporate earnings reports and showed apprehension ahead of Thursday’s European Central Bank’s rate decision.
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