U.S. stock-index futures were mostly lower Tuesday morning ahead of quarterly results from some of the most prominent names in the technology sector, with a Chinese regulatory crackdown threatening the investing mood on Wall Street.

The developments in Asia come as investors are also waiting for economic reports this week, including second quarter GDP, and a policy update from the Federal Reserve on Wednesday.

How are stock benchmarks trading?

Futures on the Dow Jones Industrial Average
YMU21,
-0.33%

YM00,
-0.33%

were down 96 points, or 0.3%, at 34,938.

S&P 500 futures
ES00,
-0.22%

ESU21,
-0.22%

were off 6.30 points, or 0.1%, at 4,408.

Futures on the Nasdaq-100
NQU21,
-0.07%

NQ00,
-0.07%

rose 8.25 points, or less than 0.1%, to 15,126.

On Monday, major benchmarks closed at record highs for a second straight session. The Dow Jones Industrial Average
DJIA,
-0.62%

and the S&P 500
SPX,
-0.50%

each rose 0.2%, and the Nasdaq Composite
COMP,
-0.37%

inched higher to also set a fresh record.

What’s driving the market?

A multiday win streak for the S&P 500 index and the Dow were in jeopardy Tuesday as investors worried about a selloff in Hong Kong’s Hang Seng Index, which has put pressure on risk assets across the globe.

The Hang Seng HK:HSI ended 4.2% lower in Asian overnight trade, marking its second consecutive drop of more than 4%, amid China’s regulatory crackdown on technology stocks.

Meituan
3690,
-17.66%

shares dived after China published rules requiring online food platforms to pay minimum wage, but the selling was broad-based, with technology giants Tencent
700,
-8.98%

and Alibaba
9988,
-6.35%

BABA,
-3.78%

each seeing sharp declines.

Some investors fear that the selling in Asia may dim the shine of a strong U.S. corporate earnings reporting season thus far.

“This crackdown on private businesses from China is significantly denting market sentiment despite a better-than-expected earnings season so far,” said Pierre Veyret, technical analyst at ActivTrades.

See: How China’s stock-market meltdown puts U.S. investors at risk

Meanwhile, the Federal Reserve kicks off its two-day policy meeting, and the economics calendar for Tuesday includes durable-goods orders data for June, the latest Case-Shiller home price index due at 9 a.m., and the Conference Board consumer confidence index for July due at 10 a.m., along with a report on manufacturing activity in Fed’s Richmond region.

U.S stock index futures remained mostly lower after data showed orders for durable goods rose 0.8% in June, well below the 2% rise expected by economists. May orders, however, were revised to show a 3.2% rise versus an initial estimate of 2.3%.

After the close Tuesday, U.S. tech giants Alphabet GOOG, Apple AAPL and Microsoft MSFT report quarterly results.

Which companies are in focus?

Tesla Inc. TSLA shares rose 2% in early premarket action as the electric vehicle maker reported a surprisingly strong profit.

3M CoMMM said Tuesday it had net income of $1.524 billion, or $2.59 a share, in the second quarter, up from $1.306 billion, or $2.25 a share, in the year-earlier period.

Shares of General Electric Co. GE, +1.6 shot up 4.0% in premarket trading Tuesday, after the industrial conglomerate reported second-quarter profit and revenue that beat expectations, and surprisingly generated positive free cash flow.

Corning Inc.
GLW,
-3.68%

shares rose after the maker of optical technologies posted better-than-expected revenue and earnings for its second quarter. 

Centene Corp. CNC, -1.08% posted better-than-expected adjusted second-quarter profit Tuesday and offered guidance that was above consensus.

Shares of United Parcel Service Inc. UPS edged up in premarket trading Tuesday, after the package delivery giant reported second-quarter profit and revenue that beat expectations, even as the U.S. domestic business came up short of revenue forecasts.

What are other markets doing?

The yield on the 10-year Treasury note
TMUBMUSD10Y,
1.235%

fell 2.9 basis points to 1.247%. Yields and debt prices move in opposite directions.

The ICE U.S. Dollar Index
DXY,
-0.18%
,
a measure of the currency against a basket of six major rivals, was down 0.1%.

Oil futures edged lower, with the U.S. benchmark
CL00,
+0.18%

down 0.2%, while gold futures
GC00,
+0.26%

edged up 0.3% to trade back above $1,800 an ounce.

In European equities, the Stoxx 600 Europe index
SXXP,
-0.48%

and London’s FTSE 100
UKX,
-0.38%

each fell by 0.5%.

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