Stock futures rise ahead of busy earnings day

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Stock futures rose on Monday night as traders experienced one of the busiest weeks of the corporate earnings season.

Futures linked to the Dow Jones Industrial Average were up 87 points, or 0.3%, while those for the S&P 500 were up 0.3%. Nasdaq 100 futures gained 0.4%.

The move in futures comes after a slightly declining day for equities. The Dow and Nasdaq Composite were each down 0.1%, while the S&P 500 was an inch lower by 0.02%.

Major indices have moved lower as the first quarter earnings season warms. Before the bell on Tuesday, Johnson & Johnson and insurance giant Travelers will report their latest results. Other notable reports include Hasbro, Lockheed Martin, and multiple mid-sized banks such as Citizens Financial.

As inflation and the Federal Reserve’s next moves are a key debate in the markets, investors look forward to understanding how supply chains and consumer demand are performing for large companies. Expectations for Fed rate hikes have risen sharply in recent months, although the central bank has said it will depend on the data to decide how it will raise rates during the year.

“Can the Fed raise interest rates actually solve some of the shortfalls that we have with labor, with semiconductors, with wheat? Probably not. So maybe they’ll end up acting a little less aggressively than some people think,” said Adam Parker of Trivariate Research on “Closing Bell: Overtime.”

Concerns about the Fed’s next steps have also led to high volatility in the bond market, which appears to have weighed on equities in recent weeks. On Monday, 10-year government bond yields hit their highest level in three years. St. Louis Fed President James Bullard told CNBC’s Steve Liesman on Monday that “there’s been quite a bit of pricing in” in terms of Fed actions.

Elsewhere on Tuesday, investors will get an updated view of the housing market with housing starts and building permits for March.



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