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Earnings reports from a host of companies including Microsoft
and Google-owner Alphabet will offer further clues on the
strength of corporate America amid higher Treasury yields and an
aggressive Federal Reserve tightening cycle.
Shares of the two companies, which report after market close,
were down 0.2% each in early trading.
General Electric Co dropped 3% in premarket trading after the
industrial conglomerate reported a 19% drop in adjusted
quarterly profit, while General Motors edged 0.9% higher after
reaffirming its full-year outlook.
3M slipped 2.6% after the diversified manufacturer reported 4%
fall in quarterly revenue, hurt by shrinking overseas earnings
due to a stronger dollar and impact from divestitures.
While earnings reports are expected to influence trading
decisions this week, U.S. stock markets rose in the past two
sessions after signs of economic softness suggested the effects
of the Fed's policy aimed at curbing decades-high inflation were
taking root.
Markets are still pricing in a fourth-straight 75 basis point
rate hike from the Fed on Nov. 2, but a report from S&P Global
that showed a contraction in business activity this month
tempered bets of another jumbo-sized raise in December. [FEDWATCH]
So far, the earnings season has been better than expected, with
nearly three-quarters of the 99 companies in the S&P 500 having
beaten estimates, according to Refinitiv data.
At 6:23 a.m. ET, Dow e-minis were down 154 points, or 0.49%, S&P
500 e-minis were down 17.25 points, or 0.45%, and Nasdaq 100
e-minis were down 30.5 points, or 0.27%.
Warner Bros Discovery Inc fell 0.4% as the newly combined media
company said that costs associated with cutting content could
reach $2.5 billion.
Shares of Meta Platforms dipped 0.2% after its messaging app
WhatsApp stopped working for many people across the world.
Investors will also focus on a report from the Conference Board
expected at 10 a.m. ET , which is expected to show consumer
confidence declined in October compared to September as rising
interest rates take a toll on consumer spending.
(Reporting by Amruta Khandekar in Bengaluru)
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