US stock futures rise ahead of big tech earnings: Market recap

US stock futures rise ahead of big tech earnings: Market recap

(Bloomberg) – U.S. futures have advanced as investors await the next batch of earnings from some of the world’s biggest companies. Treasury yields fell and the dollar gained.

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Contracts on the S&P 500 fluctuated before turning green, while those on the Nasdaq 100 came off session lows to trade little. Twitter Inc. gained as much as 2.1%, narrowing the gap to Elon Musk’s bid price before the court’s Oct. 28 deadline for the deal. Tesla Inc. fell more than 2% after lowering prices for its lineup in China.

While the trajectory of U.S. interest rates remains the focus of investors’ attention this week, they will also focus on the earnings of mega-cap tech companies, among the top drivers of earnings growth for the S&P 500. five largest technology companies by revenue – – Apple Inc., Microsoft Corp., Alphabet Inc., Inc. and Meta Platforms Inc. – are expected to experience the largest contraction in profits in three years, according to data compiled by Bloomberg.

“Clearly demand is slowing down, but so far we’ve seen pockets of technology like software, with cloud computing still quite resilient,” said Laura Cooper, senior investment strategist at BlackRock International Ltd., on Bloomberg TV. “We’ll be watching for any signs of a crack that could hurt some of those earnings expectations.”

A dollar strength gauge rose in choppy trading that saw wild swings in the yen amid signs of a second intervention by Japanese authorities in two sessions. UK bonds rallied after Boris Johnson pulled out of the race to lead the UK’s ruling Conservative Party, bringing former Chancellor Rishi Sunak one step closer to becoming the next prime minister.

The Stoxx Europe 600 index climbed more than 1%. Media, Travel & Leisure and Utilities advanced, while Energy underperformed as Oil fell amid bitterness over China. Prosus NV fell by more than 13%.

The Chinese yuan and the country’s stocks fell in Hong Kong to the lowest level since the depths of the 2008 global financial crisis, even as economic growth data beat estimates. The onshore yuan depreciated as much as 0.4%, while the Hang Seng China Enterprises Index, a gauge of Hong Kong-listed Chinese stocks, plunged more than 5% as investors spooked by the tightening of President Xi Jinping’s grip on China’s ruling party. U.S.-listed Chinese stocks, including Alibaba Group Holding Ltd. to Inc., fell in premarket trading.

“Market sentiment may remain cautious towards China in the near term, amid concerns of a shift in focus towards more state control versus a market-driven approach under the new management team,” said Xiaojia Zhi, chief China economist at Crédit Agricole CIB. “The way out of zero-Covid is not yet clear.”

Chinese economic data that was delayed last week and released on Monday showed a mixed recovery, with unemployment rising and retail sales weakening despite a pickup in growth. Still, Xi’s Covid-zero campaign looks likely to continue to weigh on the economy and there has been speculation that his “common prosperity” goal could even lead to property and inheritance taxes.

Key events this week:

  • Revenue due this week includes: Apple, Microsoft, Exxon Mobil, Ford Motor, Credit Suisse, Airbus, Alphabet, Amazon, Bank of China, Boeing, Caterpillar, Cnooc, Coca-Cola, HSBC, Intel, McDonald’s, Mercedes-Benz, Merck, Samsung Electronics, Shell, UBS, UPS, Vale, Visa, Volkswagen

  • PMI for the United States, Monday

  • US Conference Board Consumer Confidence, Tuesday

  • Bank of Canada rate decision Wednesday

  • ECB rate decision Thursday

  • US GDP, durable goods orders, first jobless claims, Thursday

  • Bank of Japan policy decision Friday

  • US Personal Income, Personal Spending, Pending Home Sales, University of Michigan Consumer Sentiment, Friday

Some of the major movements in the markets:


  • S&P 500 futures rose 0.4% at 8:27 a.m. PT

  • Nasdaq 100 futures rose 0.1%

  • Dow Jones Industrial Average futures rose 0.5%

  • The Stoxx Europe 600 rose 1.4%

  • The MSCI World index was little changed


  • The Bloomberg Dollar Spot Index rose 0.5%

  • The euro fell 0.3% to $0.9837

  • The pound was little changed at $1.1300

  • The Japanese yen fell 1% to 149.12 per dollar


  • Bitcoin fell 0.6% to $19,375.81

  • Ether rose 1.3% to $1,347.81


  • The yield on 10-year Treasury bills fell two basis points to 4.20%

  • Germany’s 10-year yield fell eight basis points to 2.33%

  • The UK 10-year yield fell 20 basis points to 3.86%


  • West Texas Intermediate crude fell 2.2% to $83.16 a barrel

  • Gold futures fell 0.2% to $1,652.30 an ounce

–With help from Charlotte Yang and Brett Miller.

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