US stock futures rise ahead of big tech earnings: Markets wrap

(Bloomberg) — US futures advanced as investors await the next batch of earnings from some of the world’s largest companies. Treasury yields fell and the dollar rose.

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Contracts in the S&P 500 and Nasdaq 100 fluctuated before turning green. Twitter Inc. As much as 2.1%, narrowing the gap on Elon Musk’s bid price before the October 28 court deadline for the deal.

While the trajectory of US interest rates remains in the center of investors’ attention, this week their focus will also be on the earnings of giant tech companies, among the main earnings growth drivers for the S&P 500. The five largest tech companies by revenue — — are expected to Apple Inc. and Microsoft Corp. and Alphabet Inc. and Amazon.com Inc. and Meta Platforms Inc. It reported the biggest profit contraction in three years, according to data compiled by Bloomberg.

“Obviously demand is slowing, but so far we’ve seen pockets of technology like software, and cloud computing still very resilient,” Laura Cooper, chief investment analyst at BlackRock International Limited, said on Bloomberg TV. “We will be watching for any signs of cracks that could affect some of these earnings forecasts.”

A gauge of the dollar’s strength rose in choppy trading that saw sharp fluctuations in the yen amid signs of a second intervention from the Japanese authorities in two sessions. British bonds soared after Boris Johnson withdrew from the race to lead the United Kingdom’s ruling Conservative Party, bringing former chancellor Rishi Sunak closer to becoming the next prime minister.

The Stoxx Europe 600 advanced. Media, travel, entertainment and utilities rose, while energy underperformed as oil declined amid jittery sentiment over China. Prosus NV slipped more than 11%.

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The Chinese yuan and the country’s shares in Hong Kong fell to their lowest level since the depths of the 2008 global financial crisis even as economic growth data beat estimates. The local yuan fell as much as 0.4%, while the Hang Seng China Enterprises Index, a measure of Chinese stocks listed in Hong Kong, fell more than 5%, with investors spooked by President Xi Jinping’s tight grip on China’s ruling party. US-listed Chinese stocks including Alibaba Group Holdings Ltd. slipped to JD.com in pre-market trading.

“Market sentiment could remain cautious in the near term on China, due to concerns about a shift in focus toward more state control versus a market-driven approach under the new leadership team,” said Xiaojia Zhi, chief China economist at Credit Agricole CIB. “The path out of Zero-Covid is not yet clear.”

Chinese economic data that was delayed last week and published on Monday showed a mixed recovery, with unemployment rising and retail sales weakening despite rebounding growth. However, Xi’s Covid-Zero campaign appears likely to continue to squeeze the economy, and there has been speculation that his “shared prosperity” goal may even lead to property and inheritance taxes.

This week’s main events:

• Earnings due this week include: 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 and Merck , Samsung Electronics, Shell, UPS, UPS, Phil, Visa, Volkswagen

• US PMIs, Monday

• Consumer confidence from the American Conference Board, Tuesday

• Bank of Canada interest rate decision, Wednesday

• European Central Bank rate decision, Thursday

• US GDP, Durable Goods Orders, Initial Jobless Claims, Thursday

• Bank of Japan policy decision, Friday

• US personal income, personal spending, pending home sales, University of Michigan consumer confidence, Friday

Some of the main movements in the markets:

Stores

• S&P 500 futures are up 0.7% as of 7:41 a.m. New York time

• Nasdaq 100 futures rose 0.5%

• Futures on the Dow Jones Industrial Average rose 0.7%

• The Stoxx Europe 600 Index is up 1.7%

• The MSCI World Index rose 0.1%.

coins

• Bloomberg spot dollar index rose 0.6%.

• The euro fell 0.5% to $0.9814

• The British pound fell 0.2% to $1.1283

• The Japanese yen fell 1.2 percent to 149.36 per dollar

Cryptocurrency

• Bitcoin fell 0.4% to $19417.05

• Ether rose 1.5 percent to $1,350.11

bonds

• The yield on the 10-year Treasury fell six basis points to 4.15%.

• Germany’s 10-year yield fell 11 basis points to 2.31%

• The yield on British 10-year bonds fell 24 basis points to 3.81%.

goods

• West Texas Intermediate crude fell 1.2% to $84.01 a barrel

• Gold futures fell 0.2 percent to $1,653.50 an ounce

Assisted by Charlotte Yang and Brett Miller.

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