US futures mixed amid focus on earnings, inflation report

Bloomberg

US equity-index futures were mixed and the dollar fell as investors bet a strong earnings performance can continue despite recent disappointments. European stocks fall.
Contracts on the S&P 500 ticked higher while those on the Nasdaq 100 slipped after the losses driven by NVidia Corp.’s revenue miss. Treasuries dipped, with the 10-year benchmark yield rising three basis points as traders await Wednesday’s inflation report to gauge the path of Federal Reserve tightening.
Optimism is gradually building up that US consumer-price index may have peaked in June as economists project the biggest drop in more than two years for July. A blowout reading for nonfarm payrolls has eased worries about a recession, while corporate performance remains stellar. About 81% of S&P 500 companies that have reported results so far have beaten or met expectations.
“A more sprightly market suggests expectations for future earnings are more positive,” said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown. “While it doesn’t indicate recession has been wholly avoided, it does indicate that the corporate outlook, and therefore consumer resilience, is perhaps looking better than it was.”
Improved sentiment undercut the haven bid for the dollar, which slid 0.2% mirroring Monday’s losses. It has fallen more than 2% since a peak in mid-July, supporting a rebound in stocks.
In US premarket trading, Norwegian Cruise rose 3% before reporting second-quarter results. Tesla Inc. added 1.2%.
Sentiment was far less sanguine in Asia where Softbank group’s record quarterly losses added to existing pressures from regulatory risks in China, property-market woes and a stubborn pandemic. Softbank erased its 2022 gains after posting a record $23.4 billion loss on plunging portfolio valuations and foreign-currency losses.
European stocks fell, with the benchmark Stoxx 600 down 0.3%, with almost every sector in the red outside of banks, insurers and energy producers. Asian stocks slid after Hong Kong damped speculation about looser stamp duty rules and China ordered a probe of the $3 trillion trust industry.
Oil slipped after posting its biggest gain in more than a week on Monday as investors monitored US-Iran nuclear talks and the outlook for demand. West Texas Intermediate futures traded below $90 a barrel.
Futures on the S&P 500 were little changed as of 5:58 am New York time and futures on the Nasdaq 100 fall 0.1%.
While futures on the Dow Jones Industrial Average rose 0.1%, the Stoxx Europe 600 fell 0.4% and the MSCI World index was little changed.
The Bloomberg Dollar Spot Index drops 0.3% and the euro rises 0.4% to $1.0237.
While the British pound rose 0.3% to $1.2123, the Japanese yen was little changed at 134.87 per dollar.
The yield on 10-year Treasuries advanced three basis points to 2.79% and Germany’s 10-year yield advanced three basis points to 0.92%.
Britain’s 10-year yield advanced two basis points to 1.97%.