Stock futures fell in early trading Tuesday ahead of quarterly earnings reports from several mega-cap technology companies.
Futures on the Dow Jones Industrial Average declined nearly 150 points. S&P 500 and Nasdaq 100 futures also traded in negative territory.
Shares of Tesla rose about 2.3% in premarket trading following a better-than-expected second-quarter earnings report. The electric vehicle maker passed $1 billion in quarterly net income for the first time.
Second-quarter earnings season continues with Google-parent Alphabet, Microsoft and Apple set to report after the bell Tuesday.
“It appears that we’re going to get really solid earnings from these companies and that should give a little bit of a boost to the market. Some of these names have already run so much this year that perhaps we don’t get a large bounce,” said Victoria Fernandez, Crossmark Global Investments chief market strategist.
“Apple may be your best opportunity to see some movement because they’ve been in more of a consolidation phase over the last few months,” Fernandez added.
JetBlue, UPS, General Electric and Starbucks are also scheduled to post earnings Tuesday.
The major U.S. stock averages closed Monday’s regular session at record highs to each notch five-day win streaks. The Dow gained 82.76 points, or 0.24%. The S&P 500 also added 0.24% and the tech-heavy Nasdaq Composite closed 0.03% higher.
Hong Kong markets saw yet another day of heavy losses Tuesday, with the Hang Seng index dropping more than 4%.
The Federal Reserve’s two-day policy meeting also begins Tuesday. Investors are awaiting insights into the central bank’s monetary policy.
The Federal Open Market Committee will release a statement when the meeting concludes Wednesday, followed by Chairman Jerome Powell’s news conference.
