U.S. stock futures were little changed early Wednesday, signaling a cautious open as investors weighed geopolitical uncertainty against a busy slate of corporate earnings.
Renewed doubts over U.S.–China trade relations added a layer of tension to the market tone following fresh remarks from President Donald Trump.
During a lunch with Republican lawmakers in the White House Rose Garden on Tuesday, Trump said he hopes to strike a “good deal” with Chinese President Xi Jinping but left the door open to the possibility that the leaders may not meet at all.
“Maybe it won’t happen,” Trump said. “Things can happen where, for instance, maybe somebody will say, ‘I don’t want to meet, it’s too nasty.’ But it’s really not nasty. It’s just business.”
Trump also signaled he could abandon a planned meeting with Russian President Vladimir Putin, stating he didn’t want to “have a waste of time.”
The cautious tone comes amid a quiet stretch on the economic calendar, with investors waiting for Friday’s closely watched consumer price inflation report for clues on the Federal Reserve’s next policy move.
In early earnings news, Netflix (NASDAQ:NFLX) dropped 7.7% in premarket trading after reporting third-quarter results that fell short of expectations. Mattel (NASDAQ:MAT) was also under pressure after missing estimates.
Meanwhile, Intuitive Surgical (NASDAQ:ISRG) surged 18.4% in premarket action after posting strong earnings, and Capital One Financial (NYSE:COF) looked set for early strength after beating both top- and bottom-line forecasts.
Tuesday’s session reflected a similar mix of enthusiasm and caution. The Dow Jones Industrial Average hit a fresh record, supported by blue-chip gains, while the S&P 500 and Nasdaq Composite wavered around the flatline for most of the day.
The Dow climbed 218.16 points, or 0.5%, to 46,924.74 after retreating from intraday highs. The S&P 500 ended up 0.22 points at 6,735.35, while the Nasdaq slipped 36.88 points, or 0.2%, to 22,953.67.
The advance in the Dow was fueled by a 7.7% jump in 3M (NYSE:MMM) following upbeat earnings, along with a 4.1% gain in The Coca-Cola Company (NYSE:KO). Other Dow winners included Salesforce (NYSE:CRM), Amazon.com, Inc. (NASDAQ:AMZN), and The Sherwin-Williams Company (NYSE:SHW).
The broader market’s muted tone reflected a pause after a recent rally, as traders weighed ongoing U.S.–China trade uncertainty and the continuing government shutdown. With most macroeconomic data delayed, Friday’s inflation release may play a key role in shaping expectations for next week’s Fed meeting.
Among sectors, oil services outperformed, pushing the Philadelphia Oil Service Index up 2.3%, driven by an 11.6% rally in Halliburton (NYSE:HAL) on strong earnings. Housing stocks also advanced, lifting the Philadelphia Housing Sector Index by 1.7%, while retail names posted solid gains.
In contrast, gold miners slumped in tandem with bullion prices, dragging the NYSE Arca Gold BUGS Index down 10%.