Stock futures fell in early trading Tuesday ahead of quarterly earnings reports from several megacap technology companies.
Futures on the Dow Jones Industrial Average declined 100 points. S&P 500 futures slipped 0.2% and Nasdaq 100 futures traded flat. The major U.S. stock averages closed the previous session at record highs to each notch five-day win streaks.
Shares of Tesla rose about 2.3% in premarket trading following a better-than-expected second-quarter earnings report. The electric vehicle maker passed $1 billion in quarterly net income for the first time.
“It appears that we’re going to get really solid earnings from these companies and that should give a little bit of a boost to the market. Some of these names have already run so much this year that perhaps we don’t get a large bounce,” said Victoria Fernandez, Crossmark Global Investments’ chief market strategist.
“Apple may be your best opportunity to see some movement because they’ve been in more of a consolidation phase over the last few months,” Fernandez added.
Shares of UPS tumbled more than 6% in premarket trading as its domestic revenue came up shy of estimates. The shipping company beat on the top and bottom lines, however, as a surge in e-commerce orders continued.
Hong Kong markets saw yet another day of heavy losses Tuesday, with the Hang Seng index dropping more than 4% amid Beijing’s intensified crackdown on tech and education companies.
The Federal Reserve’s two-day policy meeting begins Tuesday. Investors are awaiting insights into the central bank’s monetary policy.
The Federal Open Market Committee will release a statement when the meeting concludes Wednesday, followed by Chairman Jerome Powell’s news conference.
“I empathize with Fed Chair Jay Powell as he walks a delicate tightrope — preparing markets for tapering while assuring that the Fed will be very patient and thoughtful as it starts its normalization process,” Invesco Chief Global Market Strategist Kristina Hooper said in a note.