US stock futures lower amid rising yields, election jitters and corporate earnings
Investing.com -- U.S. stock index futures drifted lower Wednesday as investors digested corporate earnings amid rising Treasury yields and political uncertainty.
At 05:40 ET (09:40 GMT), Dow Jones Futures fell 157 points, or 0.4%, S&P 500 Futures fell 9 points, or 0.2%, and Nasdaq 100 Futures fell 50 points, or 0.3%.
Wall Street indexes have fallen from record highs this week, weighed by an increase in Treasury yields--the 10-year rate surged to a near three-month high on Tuesday--uncertainty over the presidential election, as well as increasing geopolitical tensions in the Middle East. Tesla Q3 earnings on tap
The quarterly earnings season has clicked into full gear, with about a fifth of the S&P 500 reporting this week.
Tesla (NASDAQ:TSLA ) - the world’s most valuable automaker - will report its third-quarter earnings later in the session, the largest U.S. firm to report earnings this week.
Tesla’s earnings come after the EV maker’s third-quarter deliveries missed expectations, while the long-awaited reveal of its robotaxi largely underwhelmed.
Beyond Tesla, other Wall Street majors including AT&T (NYSE:T ), IBM (NYSE:IBM ), Coca-Cola (NYSE:KO ) and Bank of America (NYSE:BAC ) are also set to report Wednesday.
Elsewhere, McDonald’s (NYSE:MCD ) stock fell nearly 6% premarket after the Center for Disease Control issued an alert over an E. coli outbreak linked to the fast food chain’s burgers. The outbreak caused 10 hospitalizations and one death across 10 states, the CDC said.
Chipmaker Texas Instruments (NASDAQ:TXN ) stock rose 4% after its third-quarter earnings beat estimates, although its outlook for the current quarter somewhat underwhelmed.
Starbucks (NASDAQ:SBUX ) stock slumped over 5% after the coffee chain suspended its outlook through the upcoming fiscal year, flagging that same-store sales, net revenue and income all declined in the fourth quarter ended on Sept. 29 due to tepid demand for its pricier items in the US. Fed's Bowman set to speak
The economic data calendar is relatively quiet Wednesday, with existing home sales for September the main release.
FOMC member Michelle Bowman is also scheduled to speak, and her views on future monetary policy given the shifting expectations of the Federal Reserve being less aggressive in its easing over the next few months.
Focus is turning towards the U.S. presidential election, with investors also increasingly positioning ahead of the Nov. 5 polling day.
Markets seem to becoming more confident that Republican candidate Donald Trump will beat Vice President Kamala Harris, the Democratic candidate, but a new Reuters/Ipsos poll was published showing Harris with a marginal 46% to 43% lead over Trump.
This suggests a tight outcome, and markets could well be volatile in the run up to the polling day. Crude slips on inventories increase
Oil prices slipped following the release of industry data pointing to a rise in US crude inventories.
By 05:40 ET, the Brent contract dropped 1% to $75.28 per barrel, while U.S. crude futures (WTI) traded 1.1% lower at $70.97 a barrel.
Data from the American Petroleum Institute , released Tuesday, showed that U.S. oil inventories grew 1.643 million barrels in the past week, spurring concerns that US fuel demand was cooling.
Official US government oil inventory data, from the Energy Information Administration , are due later on Wednesday.
(Ambar Warrick contributed to this article.)
Source: Investing.com
