Dow Jones Industrial Average futures climbed Tuesday, as the 30-stock benchmark looked to snap a six-day losing streak with attention turning to the latest batch of corporate earnings.
Dow futures added 232 points, or 0.6%. S&P 500 futures and Nasdaq 100 futures rose by 0.2% and 0.1%, respectively.
UnitedHealth shares rallied more than 7% in the premarket on the back of better-than-expected revenue for the first quarter. Johnson & Johnson, another Dow member, posted mixed quarterly results, sending shares down nearly 1%.
Morgan Stanley jumped almost 4% before the bell after beating analyst consensus forecasts on both lines. Bank of America also topped expectations for the quarter, pushing shares higher by more than 2%.
America’s largest companies have given Wall Street reason for optimism in the early innings of the new corporate earnings season. Of the less than 10% of S&P 500-listed firms that have reported financials, nearly four of of every five have exceeded Wall Street consensus estimates, according to FactSet.
Beyond earnings, traders will monitor remarks from Federal Reserve Chair Jerome Powell. The central bank official is set to speak at the Washington Forum on the Canadian Economy in the afternoon.
Wall Street is coming off a choppy day that marked the Dow’s sixth straight losing session — its longest negative streak since June. The blue-chip index erased most of its 2024 gains, a major reversal considering that just weeks ago it approached the key 40,000 level. The S&P 500 and Nasdaq Composite each closed Monday down more than 1%.
Those losses follow a rise in yields, with the 10-year Treasury‘s topping 4.6%, its highest level going back to November.
Elsewhere, investors were concerned of escalating tensions in the Middle East after Iran’s launch of missiles and drones at Israel on Saturday. The CBOE Volatility Index, commonly referred to as the fear gauge, closed at its highest point since October.
Still, some market observers urged investors to remain calm and stay the course, saying a resilient economy and strong labor market could continue to be supportive of equities.
“We’re not going to see a sustained downturn in the U.S. equity market until we have an earnings problem, which we do not have right now, and the labor market cracks, which is not happening right now,” Lauren Goodwin, chief market strategist at New York Life Investments, told CNBC’s “Closing Bell” on Monday. “I anticipate that the jitters that we’re seeing are a result of, ‘Yes, valuations are high. There’s a lot of uncertainty.’ That’s been true for months.”
First appeared on www.cnbc.com