US pre-open: Futures trade lower as investors brace for earnings
Wall Street futures were in the red ahead of the bell on Tuesday as traders braced for an onslaught of earnings from some of the nation's biggest firms.
As of 1200 GMT, Dow Jones futures were down 0.24%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.23% and 0.38% lower, respectively.
The Dow closed 254.07 points higher on Monday despite an underwhelming start to earnings season.
Market participants will be paying close attention to corporate earnings again on Tuesday, with 3M, Raytheon Technologies, General Electric, Lockheed Martin, Verizon, and Johnson & Johnson all set to report before the open. Microsoft will also issue an update on its most recent trading quarter after the close.
Swissquote's Ipek Ozkardeskaya said: "All eyes are on Microsoft – not only because it will release Q4 earnings after the bell, but also because it’s been making a great buzz since the start of the year thanks to its bet on ChatGPT. The company confirmed yesterday that is putting $10.0bn into the now-very-famous ChatGPT. And given the traction that ChatGPT has gained since the start of the year, Microsoft could be on a winning path with its AI-bet.
"Let's see if Microsoft will be the one to push the S&P500 above the year-long down trending channel top – despite the looming recession chatter."
On the macro front, a flash reading of S&P Global's manufacturing and services PMIs will be published at 1445 GMT, while the Richmond Federal Reserve's manufacturing index will follow at 1500 GMT.
Reporting by Iain Gilbert at Sharecast.com