Economy

US equity futures fluctuate as the earnings season begins

US equity futures were volatile on Tuesday ahead of the earnings season, as several large US banks reported this morning.

S&P 500 futures fell 0.1%, indicating that stocks could come under pressure after the opening bell. The rally in technology giants’ shares pushed up the broad market index on Monday to Its second highest close in history. Nasdaq 100 futures rose 0.9%

Johnson & Johnson has temporarily halted the coronavirus vaccine trial, raising concern that this vaccine and other vaccines in development may be delayed.


Photo:

Sherrill Gerber / Associated Press

Uncertainty about the second wave of Coronavirus infection The extent to which governments may have to renew restrictions to control the spread is putting pressure on investor minds as the third-quarter earnings season kicks off on Tuesday.

“The earnings season will create a lot of volatility, especially before the election,” said Ludovic Sobran, Allianz’s chief economist. “The market’s focus will remain on financial and technical profits: this will be the main driver.”

BlackRock shares rose 4.3 percent after that Reported third quarter earnings It was above expectations and revenue rose above expectations.

JP Morgan

Chase shares rose 1.6% after that Published earnings per share Higher than expectations, but also said it would extend the suspension of share buybacks at least until the end of the fourth quarter.

Johnson & Johnson

Stocks tumbled 1.5% ahead of the New York opening bell after that Coronavirus vaccine trials were stopped Because one of the participants fell ill unexpectedly, sparking new speculation about the time when vaccination vaccines may become widely available. The company also revised its full-year forecast for revised operating sales in its earnings report.

The J&J vaccine is one of the most advanced Covid-19 shots under development, and it is among the few vaccines that have entered the final stage of testing in the United States.

AstraZeneca

and since then Test effort has resumed In the UK, clinical trials in the US are still pending.

“It’s a reminder that while we have this race to get a vaccine, it might take longer,” said Paul Jackson, global head of asset allocation research at Invesco. And he warned that people are overly optimistic about the speed at which a vaccine can stop the epidemic. “If we got one through trials and authorized it, that would be a great step, but then it will take some time to get it widely distributed.”

In the bond markets, the yield on the benchmark 10-year Treasury note fell to 0.761% from 0.775% on Friday.

Stocks are booming as companies dump millions of workers on payroll. The Wall Street Journal explains why the stock market is disconnected from the economic reality in the United States. Image illustration by Carlos Waters / WSJ

Traders are also awaiting the latest inflation data, which is scheduled for release at 8:30 AM ET. Consumer prices are expected to rise in September for the fourth consecutive month. But inflation pressure is likely to be muted, keeping the door open for the Fed to continue its easy money policy.

In trading before the opening bell,

Walt Disney

It is up 4.3% after it announced a major reorganization of its business Focus more on broadcasting. Apple shares rose 1.7% ahead of the company’s presentation scheduled for Tuesday as expected Unveiled the upcoming iPhone.

Abroad, the Stoxx Europe 600 continental index is down 0.1%.

In Asia, most of the major indices were mixed with trading closed. The Shanghai Composite was flat after trade data showed that Chinese exports It increased nearly 10% in September, Reflecting the ongoing recovery. Markets in Hong Kong have been closed due to tropical storm Nangka slated to hit the city.

The International Monetary Fund is also set to produce an updated forecast for global economic growth at 8:30 a.m., as finance ministers and central bank governors roughly meet for the annual meetings of the International Monetary Fund and World Bank.

Write to Anna Hirtenstein at [email protected]

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