The Market News Today: S&P 500 Futures Slip as Investors Eye Tech Earnings and Economic Data

S&P 500 Futures Dip as Markets Await Major Earnings and Economic Data

S&P 500 futures edged lower early Tuesday following a strong performance on Monday, with the index posting its best day since early June. Technology stocks rebounded, leading gains in the Nasdaq Composite and S&P 500 sectors. Small-cap stocks continued to show strength, reflecting a potential shift from Big Tech. Investors are anticipating earnings reports from major companies and key economic data releases, including the PCE price index. The market’s focus remains on corporate performance and potential Federal Reserve interest rate decisions.

GM and Coca-Cola Face Q2 Earnings Test Amid Economic Challenges

General Motors and Coca-Cola are set to release their Q2 earnings before the opening bell. GM is anticipated to report a 1.6% revenue increase and 44.2% growth in adjusted earnings per share. Analysts expect GM to potentially raise its 2024 guidance. For Coca-Cola, Wall Street projects a slight revenue decline but a 3.31% increase in earnings per share. GM’s focus areas include electric vehicle plans and China operations, while Coca-Cola emphasizes product innovation and growth in emerging markets. Both companies face shifting consumer spending patterns and economic pressures.

Tech Titans’ Earnings to Set Market Tone: Alphabet and Tesla in Focus

Alphabet and Tesla’s Q2 earnings reports after the close on Tuesday could significantly impact broader market sentiment. Alphabet is expected to show strong growth in advertising and AI, while Tesla faces challenges with declining deliveries and margins. These tech giants, along with five others, have driven about 60% of S&P 500 gains in 2024. Their performance could either reinforce tech dominance or trigger a sector rotation, influencing indices like the S&P 500 and Nasdaq 100. Investors eagerly await insights into AI growth and EV market trends.

Treasury Yields Ease, Gold Holds Steady Ahead of Key Economic Reports

U.S. Treasury yields decreased slightly on Tuesday as investors await important economic data releases this week, including GDP and PCE price index. These reports may influence Federal Reserve monetary policy decisions. Gold prices remained stable around $2,396 per ounce, with traders focusing on the same economic indicators for potential interest rate cut signals. Both markets reflect cautious sentiment as investors assess the U.S. economic outlook and potential policy shifts. Political factors, including upcoming elections, are also contributing to market considerations.

SEC Approves Ether ETFs: Major Asset Managers Prepare for Launch

The SEC has apparently approved exchange-traded funds (ETFs) holding ether, with trading expected to begin Tuesday. Major asset managers like BlackRock, Fidelity, and VanEck, along with crypto-focused firms, are preparing to launch these funds. While not anticipated to match the $16 billion success of bitcoin ETFs, ether ETFs are still expected to attract significant investment. These new funds will be the first in the U.S. to hold spot ether, offering investors direct exposure to the world’s second-largest cryptocurrency.