Traders on the floor of the New York Stock Exchange.
Ted Shaffrey | AP
Stock futures were little changed on Tuesday, as traders kept an eye on rising Treasury yields.
Futures tied to the S&P 500 added less than 0.1%, while Nasdaq 100 futures fell 0.1%. Dow Jones Industrial Average futures climbed 22 points, or 0.1%.
The 10-year Treasury yield traded at 4.7%, just below an October 2007 high reached in the previous session. The benchmark yield has ripped higher in the past month, as traders assess the possibility of tighter Federal Reserve for longer.
“Stocks are attempting to rebound but bulls remain chastened and diffident, with little appetite to chase on the upside,” wrote Adam Crisafulli of Vital Knowledge. “At this point, buyers seem willing to miss the next ~2-4% of an advance to ensure the lift is on more stable footing before participating.”
Wall Street is coming off a mixed session, after lawmakers in Washington arrived at a short-term agreement over the weekend that headed off a government shutdown. The 30-stock Dow closed lower by 0.2%, while the S&P 500 closed marginally higher. The Nasdaq Composite rose for a fourth day in a row.
Investors are hoping to turn the page on a disappointing September for stocks. All three major indexes closed the month and the third quarter lower. The S&P 500 alone lost nearly 5% in September.
That means key economic reports — such as last month’s payroll reports, due Friday — and the kick off of earnings reporting season next week are back in focus.
“Investors expect a solid upcoming earnings season, but we believe expectations are too optimistic for the balance of 2023 and 2024,” said Richard Saperstein, chief investment officer at Treasury Partners.
“The most immediate risk to stocks is if companies are meaningfully affected by the economic slowing that is occurring from higher interest rates, which is a prominent risk that the market is ignoring right now,” he added.
On the economic data front, investors will be watching the Job Openings and Labor Turnover Survey for August, due Tuesday morning. Economists polled by Dow Jones anticipate 8.8 million job openings.