Stock market futures drifted lower on Tuesday morning as geopolitical tensions escalate with the U.S. House Speaker Nancy Pelosi expected to land in Taiwan at 10:20 a.m. ET, defying Chinese authorities who have warned of consequences if the trip takes place.
Treasury yields ticked lower on Tuesday’s premarket session. The U.S. 10-year Treasury yield (US10Y) is down 4 basis points to 2.56%, while the U.S. 2-year Treasury yield (US2Y) has dipped 4 basis point to 2.87%.
The S&P, Dow, and Nasdaq each hinge on their 100-day moving average lines and are fighting to break higher in a constant battle with the bears.
MKM Partners shared a note that stated: “The S&P 500 had a strong rebound during the month of July, finishing up over +9% with 86% of constituents moving higher. Investors are starting to look through the interest rate hikes to the other side where easing may kick in (10-year yields pulling back helping).”
On an economic front June Job Openings and Labor Turnover Survey data is due out shortly after the opening bell with the forecasted 11M figure expected to be lower than the previous months 11.25M.
Among active stocks, shares of Caterpillar have fallen early on after the machinery manufacturing firm posted mixed earnings where the firm beat on Q2 Non-GAAP EPS but missed on revenue.