Dow Futures Rise, Oil Prices Climb, Netflix Earnings Loom—and What Else Is Happening in the Stock Market Today

With the Federal Reserve’s next rate decision looming, Wall Street is focused on corporate earnings.

Angela Weiss/AFP/Getty Images

Stocks were higher on Tuesday after a selloff on Monday, as investors continue to focus on corporate earnings and weigh the risks of recession amid inflationary pressures.

Futures for the Dow Jones Industrial Average rose 30 points, or 0.1%, after the index retreated 215 points on Monday to close at 31,072. S&P 500 futures signaled a start 0.2% into the green with the tech-stock-heavy Nasdaq poised to climb 0.1%.

Overseas, the pan-European Stoxx 600 lost 0.6% and Hong Kong’s Hang Seng Index fell 0.9%, as foreign stocks followed Wall Street’s poor late-in-the-day performance from Monday.

Stocks started out Monday with a rally, looking set to carry forward the momentum from gains last week, but sentiment turned sour late in the day. Downbeat news from Apple (ticker: AAPL)—the world’s largest public company—was enough to drag the whole stock market lower

“U.S. sentiment turned late in the day following reports that tech giant Apple would be slowing hiring and spending next year, raising the stakes on the tech earnings out this week,” said Jim Reid, a strategist at Deutsche Bank. “Looking forward, there are signs that the selloff has stabilized for now, with S&P 500 futures pointing slightly higher.”

The risk of recession continues to dominate investor attention. Facing the highest inflation in decades, the Federal Reserve is expected to move forward on a path of aggressive monetary policy to tame red-hot prices, including further interest-rate increases.

With little economic data between now and the Fed’s next policy meeting—when the central bank is expected to decide on another supersize rate hike—markets are likely to continue focusing on corporate news and earnings.

Investors will have to wait until next week for results from the tech giants including Apple, Alphabet (GOOGL), Amazon (AMZN), Microsoft (MSFT), and Meta (META), though Netflix (NFLX) earnings are due later Tuesday. Reports from Johnson & Johnson (JNJ) and Lockheed Martin (LMT) will also land.

“As the back-and-forth in sentiment yesterday showed, there are still plenty of obstacles for investors to navigate over the coming days,” Reid said. “Not just recession risk but also the ongoing threat of a Russian gas shut-off at the end of the week.”

In the commodity space, oil prices have continued to march higher after surging on Monday. Futures for U.S. benchmark West Texas Intermediate crude rose 0.5% to $103 a barrel after starting the week at $98 amid fears of tightening global supply.

“[Russian natural-gas company] Gazprom declared a backdate force majeure on some major European customers. That raised fears that gas flows would not return through the Nord Stream 1 pipeline to Germany at the end of the week, causing a knock-on impact on oil prices,” said Jeffrey Halley, an analyst at broker Oanda. “Markets also seem to have concluded that President Biden effectively returned from Saudi Arabia empty-handed from his weekend visit.”

The OPEC organization of national producers—dominated by Saudi Arabia—will meet in the coming weeks, with few indications that the group will boost output targets.

Write to Jack Denton at jack.denton@dowjones.com