Market Analysis

US stock futures rise as third-quarter earnings are expected

Amos Simanungkalit · 21 Oct 202427.7K Views

U.S. stock index futures saw a slight rise in Sunday evening trading, with attention focused on a series of key earnings reports from the technology sector and other industries in the days ahead.

This follows a positive session for Wall Street on Friday, where indexes hovered near recent record highs, supported by signs of economic strength in the U.S. and encouraging earnings reports.

However, the market’s upward momentum appeared to be slowing, as investors remained cautious ahead of the Federal Reserve's upcoming meeting and the closely contested U.S. presidential election. Concerns over elevated stock valuations also raised the potential for short-term declines.

By 19:18 ET (23:18 GMT), S&P 500 Futures inched up 0.1% to 5,914.50 points, Nasdaq 100 Futures climbed 0.2% to 20,519.75 points, and Dow Jones Futures edged up 0.1% to 43,565.0 points.

Tech Sector Earnings in Focus Tesla Inc. (NASDAQ) is among the most anticipated reports this week, with investors closely watching the company’s earnings after the unveiling of its robotaxi earlier this month, which received a lukewarm response. The EV manufacturer also missed its third-quarter delivery targets, potentially impacting its quarterly results.

Additionally, several major chipmakers are set to report this week, following mixed signals on demand from industry leaders ASML (NASDAQ) and TSMC (NYSE). Texas Instruments (NASDAQ), Western Digital Corporation (NASDAQ), and Lam Research Corp. (NASDAQ) are among the key semiconductor stocks scheduled to announce earnings, along with tech giant IBM (NYSE).

Outside the tech space, major defense companies are preparing to release their earnings. Notable firms such as RTX Corp (NYSE), Lockheed Martin (NYSE), L3Harris Technologies Inc. (NYSE), General Dynamics (NYSE), and Northrop Grumman (NYSE) are due to report soon.

Telecom giants T-Mobile US Inc. (NASDAQ), Verizon Communications Inc. (NYSE), and AT&T Inc. (NYSE) will also release earnings in the coming days, while Boeing Co. (NYSE) is expected to report on Wednesday, with attention on the company’s cash position as it navigates its first major strike in over a decade.

Wall Street Eyes Record Highs Recent strong performances from banks and tech companies pushed Wall Street indexes to fresh record highs. Upcoming earnings could determine whether this positive momentum continues.

On Friday, the S&P 500 gained 0.4% to reach 5,864.67 points, while the NASDAQ Composite rose 0.6% to 18,489.67 points. The Dow Jones Industrial Average edged up 0.1%, hitting a record high of 43,257.91 points.

Aside from earnings, investors are closely monitoring U.S. interest rates and the 2024 presidential elections, with expectations for heightened market volatility in the coming weeks.