U.S. stock-index futures were mixed Tuesday morning ahead of quarterly results from some of the most prominent names in the technology sector, with a Chinese regulatory crackdown threatening the investing mood on Wall Street.
The developments in Asia come as investors are also waiting for economic reports this week, including second quarter GDP, and a policy update from the Federal Reserve on Wednesday.
How are stock benchmarks trading?
Futures on the Dow Jones Industrial Average
traded 65 points lower at 34,969, a decline of 0.2%
S&P 500 futures
were 4.80 points, or 0.1%, lower at 4,409.50.
Futures on the Nasdaq-100
rose 10.50 points, or less than 0.1%, to reach 15,127.75.
On Monday, stocks closed at a record high for the second straight session. The Dow Jones Industrial Average
and the S&P 500
each rose 0.2%, and the Nasdaq Composite
inched higher to also set a fresh record.
What’s driving the market?
A multiday win streak for the S&P 500 index and the Dow were in jeopardy Tuesday as investors worried about a selloff in Hong Kong’s Hang Seng index, which has put pressure on risk assets across the globe.
The Hang Seng HK:HSI ended 4.2% lower in Asian overnight trade, marking its second consecutive drop of more than 4%, amid China’s regulatory crackdown on technology stocks.
shares dived after China published rules requiring online food platforms to pay minimum wage, but the selling was broad-based, with technology giants Tencent
each seeing sharp declines.
Some investors fear that the selling in Asia may dim the shine of a strong U.S. corporate earnings reporting season thus far.
“This crackdown on private businesses from China is significantly denting market sentiment despite a better-than-expected earnings season so far,” said Pierre Veyret, technical analyst at ActivTrades.
Meanwhile, the Federal Reserve kicks off its two-day policy meeting, and the economics calendar for Tuesday at 8:30 a.m. Eastern Time includes durable-goods orders data for June, the latest Case-Shiller home price index due at 9 a.m., and consumer confidence index for July due at 10 a.m., along with a report on manufacturing activity in Fed’s Richmond region.
Which companies are in focus?
- Tesla TSLA shares rose 2% in early premarket action as the electric vehicle maker reported a surprisingly strong profit.
- 3M Co. MMM said Tuesday it had net income of $1.524 billion, or $2.59 a share, in the second quarter, up from $1.306 billion, or $2.25 a share, in the year-earlier period.
- Shares of General Electric Co. GE, +1.6shot up 4.0% in premarket trading Tuesday, after the industrial conglomerate reported second-quarter profit and revenue that beat expectations, and surprisingly generated positive free cash flow.
- Centene Corp. CNC, -1.08% posted better-than-expected adjusted second-quarter profit Tuesday and offered guidance that was above consensus.
- Shares of United Parcel Service Inc. UPS edged up in premarket trading Tuesday, after the package delivery giant reported second-quarter profit and revenue that beat expectations, even as the U.S. domestic business came up short of revenue forecasts.