U.S. stock futures pointed to a modestly higher open on Tuesday as a heavy slate of corporate earnings rolled in and investors looked ahead to the Federal Reserve’s interest rate decision on Wednesday.
Shortly before 7 a.m. Eastern, Dow futures were up about 170 points, or 0.3%. S&P 500 futures added 0.2% and Nasdaq 100 futures rose 0.3%. The major indexes closed higher on Monday, lifted by chip stocks after artificial intelligence company Anthropic filed for an initial public offering.
Oil, the market’s biggest source of anxiety in recent weeks, slipped for a second straight day. Brent crude traded near $116 a barrel and U.S. West Texas Intermediate around $102, both off the highs reached late last week but still elevated as Washington and Tehran weigh diplomacy against renewed fighting. High-level delegations from Saudi Arabia, Pakistan and Turkey held talks with Iranian officials in Tehran on Monday.
The earnings scoreboard before the bell
Coca-Cola raised its full-year outlook for a third straight quarter, saying it now expects comparable earnings per share to grow at least 11%, up from a prior forecast of 9% to 10% growth, despite lackluster demand in its home market. Shares rose 0.3% in premarket trading.
Boeing posted mixed third-quarter results, with a wider-than-expected loss but revenue above analyst estimates. Shares edged up 0.5% before the open.
PayPal slipped 1% after third-quarter revenue of $8.58 billion came in below the $8.71 billion analysts expected, though earnings beat estimates and the company raised its full-year profit forecast.
Hilton reported adjusted earnings of $2.45 per share on net income of $536 million, with system-wide revenue per available room up 5.8% from a year earlier. The hotel chain added 27,000 rooms in the quarter, its largest-ever quarter for organic room additions, and projected full-year RevPAR growth of 4% to 4.5%. Hilton also confirmed it will move its stock listing to the Nasdaq on November 5, keeping its “HLT” ticker.
UPS gained 1.6% after beating third-quarter expectations and raising its full-year revenue projection to about $92.6 billion, up from $91.2 billion. Corning rose nearly 3% on better-than-expected results, and Royal Caribbean jumped 4.4% after beating earnings forecasts and raising its full-year guidance.
Nvidia said it will invest $3 billion in Meta, a day after Meta unveiled plans to raise up to $95 billion to fund its artificial intelligence buildout. Nvidia shares rose 0.7% in premarket trading, while Meta dipped 0.3%.
Why it matters: this morning’s reports read like a pulse check on the American consumer. Coke’s pricing power, Hilton’s room rates and UPS’s shipping volumes each show a different corner of household and business spending, and together they tell investors whether demand is holding up under high prices and high borrowing costs.
What is on the calendar today
The August reading of the S&P Cotality Case-Shiller Home Price Index was released at 8 a.m. In the prior report, 20-city home prices rose 2.5% from a year earlier. September durable goods orders follow at 8:30 a.m.
At 10 a.m., the Conference Board releases its October consumer confidence index, which is expected to show another small decline after September’s reading fell 6.7 points to 81.9. September new home sales arrive at the same time.
After the closing bell, Visa, Robinhood and chipmaker SK Hynix report results.
The main event is Wednesday at 2 p.m., when the Federal Reserve announces its rate decision. The central bank is widely expected to hold its benchmark rate at 3.75% to 4% following September’s increase, though futures markets are pricing in at least two more hikes by mid-2027 with inflation still elevated. Thursday brings the Fed’s preferred inflation gauge, the personal consumption expenditures index, and the first estimate of third-quarter economic growth. Alphabet and Microsoft report earnings Wednesday after the close, with Amazon on Thursday.
Why it matters: the Fed’s path sets the cost of mortgages, credit cards and car loans. A decision to hold while signaling more hikes to come would mean households should not expect cheaper borrowing any time soon.
Watch whether the early earnings optimism holds through the open at 9:30 a.m., and whether oil keeps drifting lower ahead of the Fed. Our full markets open report follows after the bell rings.
JBizNews Desk | Wall Street
© JBizNews.com. All rights reserved. Unauthorized reproduction or redistribution is strictly prohibited.
