U.S. stock index futures edged higher in trading on Sunday, reflecting a slightly more positive market outlook as the global investment community prepares for the much-awaited third quarter results. Big technology companies, especially Tesla Inc. (TSLA, Financials)), are releasing financial performance numbers. The move follows trouble for Tesla last week after its robotaxi presentation and lower quarterly deliveries.
S&P 500 futures rose 0.1% to 5,914.50 points, and Nasdaq 100 futures rose 0.2% to 20,519.75 points. Dow Jones futures also rose slightly by 0.1% to 43,565.0 points, ending last Friday’s session in positive territory. With the US economy still strong and recent strong earnings reports, the stock market is hovering near historic highs.
However, current expectations regarding the Federal Reserve’s determination of the federal funds rate and the uncertain US presidential election suggest some modest upward momentum. Also, interest in high valuations tilts the market toward a bearish correction in the near term.
This week the focus shifts to the technology sector, with Tesla at the forefront among all other players. Other major revenue sources include Texas Instruments (TXN, financial), Vishay Intertechnology (VSH, financial), Swiss cutting tool manufacturer Linden Group AG, and U.S.-based cutting tool manufacturer Chipmakers such as Seco Tools are expected to be included. Among these, it has the potential to shed further light on the volatility of current demand in the semiconductor industry. Additionally, International Business Machines (IBM, finance) and Plug Power, Inc. (PLUG, finance) are also scheduled to report earnings, which could influence trends in the larger technology field.
Investors remain cautious, treading a fine line between earnings optimism and macro factors, bracing themselves for a week filled with important verdict reviews on the health of companies and tickers.
This article first appeared on GuruFocus.
