Stock futures fell in early trading Tuesday ahead of several megacap tech companies’ quarterly earnings reports.
Futures on the Dow Jones Industrial Average lost 70 points. S&P 500 futures slipped 0.1% and Nasdaq 100 futures traded unchanged.
Tesla stock rose about 2.3% in pre-market trading after a better than expected earnings report for the second quarter was released. The electric vehicle maker topped a quarterly profit of $ 1 billion for the first time.
The earnings season for the second quarter continues, with Google parent Alphabet, Microsoft and Apple reporting after the bell on Tuesday.
“It seems we are going to make really solid profits from these companies, and that should bounce back a little bit of the market bounce,” said Victoria Fernandez, chief market strategist, Crossmark Global Investments.
“Apple may be your best chance to see some movement as the company has been in more of a consolidation phase for the past few months,” added Fernandez.
JetBlue, UPS, General Electric and Starbucks will also post profits on Tuesday.
Major US stock averages closed Monday’s regular session at record highs on every notch of five-day winning streaks. The Dow gained 82.76 points, or 0.24%. The S&P 500 was also up 0.24% and the tech-heavy Nasdaq Composite closed 0.03% higher.
Hong Kong markets posted another heavy drop on Tuesday, with the Hang Seng index falling more than 4% on Beijing’s increased crackdown on tech and education companies.
The Federal Reserve’s two-day monetary policy meeting begins Tuesday. Investors are waiting for insights into the central bank’s monetary policy.
The Federal Reserve Open Market Committee will issue a statement at the end of Wednesday’s session, followed by Chairman Jerome Powell’s press conference.