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The
earnings from Google-owner Alphabet and Microsoft, due after the
bell, will be a test for their hefty valuations. The megacaps
rose 0.7% each in premarket trading.
The U.S. tech giants are expected to signal an end to a nearly
year-long slowdown in their cloud businesses as signs of
economic resilience encourage clients to boost technology
spending, while a pickup in digital ads will also aid their
profits.
The tech-heavy Nasdaq Composite Index has rallied 34.3% this
year, helped by outsized gains in rate-sensitive megacap growth
companies on optimism over artificial intelligence and hopes of
an end to the Fed's tightening cycle.
Visa, Verizon Communications, Texas Instruments, Biogen, General
Electric and General Motors are also set to report their results
later in the day.
Also in focus is a widely expected announcement of a 25 basis
point rate hike by the U.S. Federal Reserve on Wednesday.
At 05:12 a.m. ET, Dow e-minis were down 13 points, or 0.04%, S&P
500 e-minis were up 6 points, or 0.13%, and Nasdaq 100 e-minis
were up 56.25 points, or 0.36%.
All three indexes kicked off the busy earnings and data week
higher in the previous session, with a jump in oil major Chevron
helping Dow log its longest winning streak in over six years.
U.S.-listed shares of Chinese companies such as Alibaba and
Bilibili added 1.5% and 3.5%, respectively, as investors cheered
pledges of support in the readout from an earlier-than-expected
Politburo meeting in China.
On tap at 10:00 a.m. ET is the consumer confidence data that is
expected to rise to 111.8 in July from 109.7 in June.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by
Shinjini Ganguli)
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