The major U.S. index futures are currently pointing to a roughly flat open on Tuesday, with stocks likely to show a lack of direction after ending the previous session modestly higher.
A mixed reaction to earnings news from several big-name companies may contribute to choppy trading on Wall Street as traders digest the market’s recent run to record highs.
Shares of 3M (MMM) are moving sharply lower in pre-market trading after the conglomerate reported better than expected fourth quarter earnings but provided disappointing first quarter and full-year 2024 guidance.
General Electric (GE) may also move to the downside after reporting fourth quarter earnings that beat estimates but forecasting first quarter earnings below expectations.
Meanwhile, shares of Verizon (VZ) are likely to see initial strength after the telecom giant reported fourth quarter results that exceeded analyst estimates on both the top and bottom lines.
Healthcare giant Johnson & Johnson (JNJ) may also edge higher after reporting better than expected fourth quarter results.
Streaming giant Netflix (NFLX) and chipmaker Texas Instruments (TXN) are among the companies due to report their quarterly results after the close of trading.
Traders may also be reluctant to make significant moves ahead of the release of several key U.S. economic reports in the coming days.
U.S. stocks closed modestly higher on Monday, with the Dow and the S&P 500 reaching new record closing highs. The tech-heavy Nasdaq also reached its best closing level in two years.
The Dow, which climbed to a new high of 38,109.20, settled at 38,001.81, gaining 138.01 points or 0.4 percent. The S&P 500 ended with a gain of 10.62 points or 0.2 percent at 4,850.43 after reaching a high of 4,868.41. The Nasdaq settled at 15,360.29, gaining 49.32 points or 0.3 percent.
Stocks extended the rally seen to close out the previous week amid optimism about the outlook for earnings from major tech firms, with Intel (INTC), IBM Corp. (IBM) and Netflix (NFLX) among the companies due to release their quarterly results this week.
Walt Disney (DIS), United Health (UNH), Caterpillar (CAT), Apple (AAPL), Travelers Companies (TRV) and Goldman Sachs (GS) gained 1 to 2.2 percent.
American Express (AXP), IBM, Amgen (AMGN), Verizon (VZ), Cisco Systems (CSCO), Merck (MRK) and J&J posted modest gains.
Macy’s (M) gained more than 3.5 percent after the department store chain rejected a $5.8 billion takeover bid from Arkhouse Management and Brigade Capital Management.
Home Depot shares (HD) drifted down by about 1.6 percent. Nike (NKE) ended down 1.2 percent. Microsoft (MSFT), JP Morgan Chase (JPM) and Boeing (BA) also ended weak.
On the economic front, reports on durable goods orders, new home sales, fourth quarter GDP, and data on personal income and spending are due this week.