Australian shares are poised to open lower on Tuesday, after Wall Street stocks finished with the markets boosted by tech stocks.
- ASX futures point to a drop in local shares
- Wall Street stocks rebounded on Monday as investors eyed earnings week
- Netflix, Johnson & Johnson, United Airlines and Tesla are due to report this week
ASX SPI 200 futures were down by 0.5 per cent, to 7,350, by 6:49am AEST.
The Australian dollar was 0.1 per cent lower, at 74.14 US cents.
In New York, the Dow Jones index fell 0.2 per cent, the benchmark S&P 500 gained 0.3 per cent, while the Nasdaq rose 0.7 per cent.
Strong results earnings results have pushed the major averages to within striking distance of their all-time highs.
Investors have been encouraged by what they have seen in US earnings reports so far.
However, there are ongoing concerns about supply-chain issues.
“There is some weak data out of China, which is concerning on a global basis, and then market participants came into this earnings with a very pessimistic view but banks dramatically exceeded expectations,” Great Hill Capital managing member Thomas Hayes said.
Forecast-beating results from big US lenders last week set a positive tone for third-quarter earnings season, with analysts expecting S&P 500 earnings to show a 32 per cent rise from a year ago, according to Refinitiv data.
Tesla was up 3.5 per cent ahead of its earnings report this week. Other megacap technology companies on the rise included Facebook, up 3 per cent, Microsoft Corporation, up 0.9 per cent, and Amazon.com, up 0.8 per cent. Apple climbed 1.3 per cent.
Johnson & Johnson, Netflix, Verizon Communications and oilfield services company Baker Hughes are also due to report quarterly results this week.
Disney fell 3 per cent after Barclays downgraded the media giant’s stock to “equal weight” from “overweight”.
Two-year US Treasury bond yields rose 0.4 per cent, 10-year US Treasury bond returns gained 1.1 per cent.
Iron ore lost 0.7 per cent, to $US14.32 a tonne.
Spot gold was was down 0.1 per cent, to $US1,766.2.
On oil markets, Brent crude was down 0.7 per cent, at $US84.25 per barrel, while West Texas crude was up 0.2 per cent, to $US 88.24 per barrel.
On European markets, the pan-European STOXX 600 index eased (-0.5pc), along with Germany’s DAX (-0.7pc) and Britain’s FTSE (-0.4pc).