Market Snapshot: U.S. stock futures struggle ahead of more earnings, with Tesla due after the close

Wall Street may struggle to follow up a strong session, as futures fell Wednesday with investors watching rising bond yields and waiting for more corporate results, including Tesla, after the market close.

How are stock-index futures trading?
  • Dow Jones Industrial Average futures

    were flat at 35,319

  • S&P 500 futures

    were slightly lower at 4,510

  • Nasdaq-100 futures

    fell nearly 0.1% to 15,386

On Tuesday, the Dow Jones Industrial Average

rose 199 points, or 0.56%, to 35457, the S&P 500

increased 33 points, or 0.74%, to 4520, and the Nasdaq Composite

gained 107 points, or 0.71%, to 15129.

What’s driving the market?

A winning streak that has led the S&P 500 and Nasdaq Composite to five straight positive sessions looked set for a breather. The S&P 500 also sits 0.38% off its all-time high reached Sept. 2 at 4536.95.

Investors have been pushing markets higher on positive corporate earnings thus far, while juggling concerns about supply-chain disruptions, and potential hits to profit margins aren’t far off.

Fundstrat Global Advisors lifted its end-year S&P 500 forecast to 4,800 from 4,700. In a note to clients, strategists led by founder Tom Lee said they see a “strong risk-on environment” as under way, helped by a typically strong year-end seasonal pattern that follows October.

A busy earnings schedule is ahead, with electric-car maker Tesla

due to report after Wednesday’s close, while biotech Biogen
medical devices and healthcare group Abbott Laboratories
oil-field services group Baker Hughes

and telecommunications group Verizon Communications

are among the names reporting ahead of the open.

Technology stocks looked set to come under some pressure as the yield on the 10-year U.S. Treasury

hovered around a five-month high at 1.6409%. Yields climbed on Tuesday after Federal Reserve Gov. Christopher Waller said the central bank should begin tapering its monthly purchases of $120 billion in Treasurys and mortgage-related assets starting next month.

The Fed’s Beige Book of economic conditions due at 2 p.m. Eastern on Wednesday will be one to watch, said Saxo Bank’s chief investment officer Steen Jakobsen. In a note to clients, he said investors should pay special attention to what the report says “about demand relative to the available supply of labor and parts, as well as the status of supply chains and logistics.”

What companies are in focus?

This post was originally published on Market Watch

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