Stock futures are higher before big gains

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WSJ.com: Markets

US stock futures rose ahead of a series of gains that investors will analyze for insights into how companies are doing with inflation and supply chain disruptions.

Futures for the S&P 500 rose 0.3% Tuesday, suggesting the broad market index will rise after New York’s opening bell. Contracts for the technology-driven Nasdaq-100 rose 0.2% and futures for the Dow Jones Industrial Average rose 0.2%. The most important US stock indices started the week with mixed performance on Monday.

A number of companies will post quarterly earnings ahead of the market opening, including Johnson & Johnson, Bank of New York Mellon, Travelers, Procter & Gamble, and Philip Morris International. Netflix will report the earnings after the closing bell.

Investors use the earnings and company forecasts for the future to assess how companies are handling a range of problems. Inflation is likely to be higher than central bank officials originally expected, compounded by persistent supply chain disruptions, higher energy costs and labor shortages. About 81% of the S&P 500 companies that have reported to date have exceeded earnings-per-share expectations by early Monday, according to FactSet data.

“It is now a market where you will see more differentiation because it is a tougher environment,” said Daniel Morris, chief market strategist at BNP Paribas Asset Management. “If you look at past earnings, ex-financial institutions, it was very good.”

Bitcoin’s dollar value was up less than 1% from its 5:00 p.m. ET Monday, trading at $ 61,986.37 on Tuesday. The U.S.’s first publicly traded Bitcoin fund will trade on Tuesday under the ticker symbol BITO. Cryptocurrency analysts say they will be watching how strong the inflows into the fund are to gauge whether the recent cryptocurrency price rally will hold up.

In the energy markets, Brent crude oil futures, the benchmark in the global oil markets, rose 0.8% to $ 84.00 a barrel.

The pan-continental Stoxx Europe 600 grew by 0.1% overseas. TeamViewer’s shares fell 6.2% after Berenberg analysts downgraded their recommendation for the German-listed software maker to hold on buy.

Housing starts in the US, due at 8:30 a.m. ET, are expected to weaken in September. Builders were caught between strong demand from buyers – spurred in part by low interest rates – and a shortage of materials, labor and land to build.

Traders worked on the floor of the New York Stock Exchange on Monday.


Photo:

BRENDAN MCDERMID / REUTERS

Write to Caitlin Ostroff at caitlin.ostroff@wsj.com

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