Inventory futures are falling simply as buyers look ahead to the earnings season to begin
People walk past the New York Stock Exchange (NYSE) in Lower Manhattan on October 2, 2020 in New York City.
Spencer Platt | Getty Images
US stock futures fell slightly in night trading Tuesday as investors waited for the first corporate earnings and updates to a stimulus package.
Dow futures fell 90 points. S&P 500 futures lost 0.05% and Nasdaq 100 futures fell 0.05%.
Futures got a boost when Disney rose more than 5% after the close of trading after announcing a major reorganization of the company with streaming at the forefront of its business. Disney said it is centralizing its media operations into a single organization that will be responsible for content distribution, ad sales and Disney +.
The earnings season for the third quarter begins on Tuesday. Several major banks, including JPMorgan Chase, Citigroup and Delta Air Lines, will announce their results. The third quarter results are expected to decline significantly. However, traders are hoping for an upside surprise.
Investors switched from cyclical and technological names on Monday after minor updates to a tax aid package became known. The Dow Jones Industrial Average rose 250 points and the S&P 500 rose 1.64%, both aided by a 6.4% rise in Apple stock.
Apple's long-awaited iPhone launch, postponed to October due to Covid-19, takes place on Tuesday and the company is expected to launch its first 5G iPhone. It will be "the biggest iPhone event in years," Morgan Stanley's Katy Huberty told clients.
With technology stocks leading the way, the Nasdaq Composite rose 2.56% on Tuesday, the best day since September 9.
Investors also considered the possibility of a second coronavirus relief package from Washington. Over the weekend, the Trump administration urged Congress to pass a smaller $ 1.8 billion coronavirus relief bill as negotiations on a larger package continue to face roadblocks. House spokeswoman Nancy Pelosi said in a letter to colleagues that the proposal had insufficient offers on health issues.
"It hardly seems to be about 'stimulus' anymore," Jim Paulsen, chief investment strategist at the Leuthold Group, told CNBC. The S&P 500 index rebounded near record highs today, led by growth – the technology, communications and consumer discretionary sectors. "
"Lately, the stock market has been picking up whether the news of an additional stimulus package is good or bad, suggesting stocks are already responding to what is expected to be a wonderful quarterly earnings season," Paulsen added.
BlackRock and Johnson & Johnson also report quarterly results to the bell on Tuesday.
Amazon's Prime Day starts on Tuesday and the two-day event could be the biggest online shopping day of the year, according to the NPD. 57% of consumers plan to do some if not all of their vacation shopping this week.
The Department of Labor will publish the consumer price index for September on Tuesday at 8:30 a.m. (CET). Economists surveyed by FactSet expect a price increase of 0.2%. The price rose 0.4% in August, helped by rising gasoline costs.
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