US Stock Futures Edge Lower Amid Tariff Uncertainty, Earnings Anxiety: Strategist Sees S&P 500 Stuck In This Tight Range
Synopsis
Trading direction will largely hinge on any news on tariffs, bond yields, a regional manufacturing activity report for April, and commentary from companies due to report earnings before the market opens.
U.S. index futures fell in overnight trading, indicating a modestly negative start for markets on Tuesday.
The trading direction will largely hinge on any news on President Donald Trump's tariffs, bond yields, a regional manufacturing activity report, and earnings reports ahead of the open.
On the economic front, the New York Federal Reserve will release the results of the Empire State manufacturing survey for April, giving the first glimpse of the manufacturing conditions in the New York region for the month.
Economists, on average, expect the headline number to come in at -10, suggesting a more minor contraction than in March.
Bank of America Corp. (BAC), Citigroup (C), Albertsons (ACI), and Johnson & Johnson, Inc. (JNJ) are all set to report ahead of the market opening.
J.B. Hunt Transport (JBHT) and United Airlines (UAL) have scheduled their earnings reports after the market closes.
Asian markets were higher in Tuesday's session, lifted by Wall Street's positive overnight close.
On Monday, major U.S. indices ended firmly in the green, extending their gains for a second straight session. Trading was marred by some degree of volatility as traders digested tariff-related announcements that came over the weekend.
All but one of the 11 S&P 500 sector classes closed in the green, with consumer discretionary stocks experiencing modest weakness.
The yield on the benchmark 10-year U.S. Treasury bond dipped 11 basis points to 4.382% on Monday, according to CNBC.
Morgan Stanley's Mike Wilson expects the S&P 500 to trade in the 5,500-5,500 range as the 90-day pause on reciprocal tariffs and further concessions announced over the weekend reduce the near-term possibility of a recession.
The strategist said a more dovish Federal Reserve, a drop in the 10-year yield back toward the 4% range without any recessionary growth data, and a larger trade deal with China that significantly reduces tariffs could provide a lift.
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