U.S. stock futures were trading in a tight range Tuesday, signaling another day with moves in and out of positive territory as investors waited for more earnings reports and Federal Reserve chief Jerome Powell’s appearance before a Senate committee.
What are markets doing?Futures for the Dow Jones Industrial Average YMU8, +0.04% were up 10 points at 25,051, while those for the S&P 500 index ESU8, -0.05% slipped 0.75 point to 2,795.75. Futures for the Nasdaq-100 index NQU8, -0.09% dropped 9 points, or 0.1%, to 7,316, weighed by a sharp premarket drop in Netflix Inc.’s shares.
The mostly muted action comes after a mixed day on Monday, when the Dow DJIA, +0.18% closed 0.2% higher, while the S&P 500 SPX, -0.10% finished 0.1% lower and the Nasdaq Composite Index COMP, -0.26% fell 0.3%, as upbeat economic data and a round of quarterly results failed to spark much buying.
What is driving the market?Earnings were in focus again on Tuesday, with heavyweights UnitedHealth Group Inc. UNH, -0.66% , Johnson & Johnson JNJ, -0.98% and Goldman Sachs Group Inc. GS, +2.22% slated to report ahead of the opening bell. CSX Corp. CSX, -1.10% and United Continental Holdings Inc. UAL, +0.22% are among companies on the earnings docket after the market’s close.
Traders were also hesitant of making any big moves ahead of Powell’s testimony to the Senate Banking Committee at 10 a.m. Eastern Time. The Fed chairman is due to appear before the House Financial Services panel on Wednesday.
Read: Powell to defend pace of one interest-rate hike every three months
What are strategists saying?“We expect Mr. Powell to reiterate the sanguine baseline outlook for the U.S. economy that was highlighted in the FOMC minutes, as well as in recent speeches and interviews,” said strategists at UniCredit in a note.
“The main risk to the Fed’s baseline outlook is rising trade tension, and Mr. Powell will most likely warn against any further escalation. Democratic lawmakers will be keen to squeeze some critical statements on this topic out of Mr. Powell. However, one must not forget that Democrats have, in the past, favored protectionist measures much more than Republicans,” they added.
What’s on the economic calendar?Industrial production and capacity utilization data for June come out at 9:15 a.m. Eastern, followed by the home builder’s index for July at 10 a.m. Eastern.
See: MarketWatch’s Economic Calendar
Which stocks are in focus?Shares in Netflix Inc. NFLX, +1.18% slid 12% ahead of the opening bell after the streaming company late Monday reported disappointing quarterly results. Both revenue and subscriber numbers came in weaker than expected.
Read more: Is Netflix falling down a mountain, or just tripping over a molehill?
Papa John’s International Inc. stock PZZA, -4.00% was also in focus after the pizza company’s founder said it was a “mistake” to step down as chairman last week.
What are other markets doing?Asian stocks closed mostly lower, but Japan’s Nikkei 225 index NIK, +0.44% bucked the negative trend.
Trading in Europe was mixed, leaving the benchmark Stoxx Europe 600 index SXXP, +0.07% struggling for direction.
Oil prices CLQ8, -0.19% moved slightly higher, rebounding after steep declines on Monday when chatter about possible releases from global reserves sent Brent crude LCOU8, -0.14% and West Texas Intermediate oil down more than 4%.
Gold GCQ8, +0.29% was up 0.4% at $1,244.40 an ounce on Tuesday.
The ICE U.S. Dollar Index DXY, -0.13% slipped 0.1% to 94.383.
