After ending the previous session modestly higher, stocks may show a lack of direction in early trading on Tuesday. The major index futures are currently pointing to a roughly flat open for the markets, with the S&P 500 futures up by just 0.1 percent.
A mixed reaction to earnings news from several big-name companies may contribute to choppy trading on Wall Street as traders digest the market’s recent run to record highs.
Shares of 3M (MMM) are moving sharply lower in pre-market trading after the conglomerate reported better than expected fourth quarter earnings but provided disappointing first quarter and full-year 2024 guidance.
General Electric (GE) may also move to the downside after reporting fourth quarter earnings that beat estimates but forecasting first quarter earnings below expectations.
Meanwhile, shares of Verizon (VZ) are likely to see initial strength after the telecom giant reported fourth quarter results that exceeded analyst estimates on both the top and bottom lines.
Healthcare giant Johnson & Johnson (JNJ) may also edge higher after reporting better than expected fourth quarter results.
Streaming giant Netflix (NFLX) and chipmaker Texas Instruments (TXN) are among the companies due to report their quarterly results after the close of trading.
Traders may also be reluctant to make significant moves ahead of the release of several key U.S. economic reports in the coming days.
U.S. stocks closed modestly higher on Monday, with the Dow and the S&P 500 reaching new record closing highs. The tech-heavy Nasdaq also reached its best closing level in two years.
The Dow, which climbed to a new high of 38,109.20, settled at 38,001.81, gaining 138.01 points or 0.4 percent. The S&P 500 ended with a gain of 10.62 points or 0.2 percent at 4,850.43 after reaching a high of 4,868.41. The Nasdaq settled at 15,360.29, gaining 49.32 points or 0.3 percent.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday, although Japan’s Nikkei 225 Index bucked the uptrend and edged down by 0.1 percent. China’s Shanghai Composite Index rose by 0.5 percent, while Hong Kong’s Hang Seng Index surged by 2.6 percent.
Meanwhile, the major European markets are turning in a lackluster performance on the day. While the French CAC 40 Index is down by 0.3 percent, the U.K.’s FTSE 100 Index and the German DAX Index are both just above the unchanged line.
In commodities trading, crude oil futures are sliding $0.67 to $74.09 a barrel after jumping $1.51 to $74.76 a barrel on Monday. Meanwhile, after slipping $7.10 to $2,022.20 an ounce in the previous session, gold futures are inching up $6.70 to $2,208.90 an ounce.
On the currency front, the U.S. dollar is trading at 147.95 yen compared to the 148.10 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0869 compared to yesterday’s $1.0883.
Business News
U.S. Stocks May Experience Choppy Trading On Mixed Earnings News
2024-01-23 13:45:31
