Scott Olson
Stock index futures showed limited movement on Tuesday as investors position for Big Tech earnings postmarket.
Nasdaq 100 futures (NDX:IND) were +0.2%, S&P futures (SPX) were flat and Dow futures (DJI) were near even.
“The recent market strength is being driven by FOMO (Fear of Missing Out) by both retail and institutional investors,” James Demmert, CIO at Main Street Research, said. “This FOMO stock market is evidenced by the VIX at record lows, a signal of a heightened level of bullishness, which is usually not a good time to add equity exposure.”
Alphabet (GOOG) (GOOGL) and Microsoft (MSFT) will report after the close.
“We expect big tech earnings to be mixed and the real test will be for companies that have significant exposure to artificial intelligence as investors are eager to see if these companies can report strong enough results to support their significantly elevated share prices in recent months,” Demmert said. “Anything less than expectations could cause downside volatility in this sector.”
Of course there are plenty of major earnings premarket as well, including Verizon (VZ) and GM (GM), which rose after beating on the top and bottom lines.
Rates are mixed as the Fed begins its two-day meeting. The 10-year Treasury yield (US10Y) was up 6 basis points to 3.91% and the 2-year yield (US2Y) was up 6 basis points to 4.89%.
On the economic front, May S&P Case/Shiller home price index came in at +1.5% Y/Y compared to the forecasted +1.2% Y/Y figure.
Shortly after the open the Conference Board’s July measure of consumer confidence is due. The consensus is for a rise to 111.8.
