Stock futures are little changed Tuesday: Live updates
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Traders on the floor of the NYSE, Oct. 21, 2022.
Source: NYSE
Stock futures were little changed Tuesday after the S&P 500 posted its third positive session in a row and banking sector concerns continued to ease.
Futures tied to the Dow Jones Industrial Average rose 35 points, or 0.1%. Meanwhile, S&P 500 futures traded around the flatline, and Nasdaq-100 futures dipped 0.1%.
Lyft shares gained 4% in the premarket after the ridesharing company announced a new CEO and that its cofounders would step away from their day-to-day roles. PVH Corp. shares popped 12% on strong quarterly results.
The moves follow a mixed session on Monday. Investors fought to extend last week's gains, but tech shares came under pressure. The Dow Jones Industrial Average added 194.55 points, or 0.6%, while the S&P 500 gained 0.16%. The Nasdaq Composite dipped 0.47% as tech stocks moved lower.
A slew of positive news reports helped lift sentiment on Wall Street, including First Citizens BancShares' agreement to buy large parts of Silicon Valley Bank. Further, CNBC reported that deposit flows out of small institutions and into banking behemoths have slowed.
Eight of 11 S&P 500 sectors finished in positive territory on Monday, led to the upside by a 2.1% gain in energy. Beaten-up regional bank stocks, including First Republic, climbed along with the SPDR S&P Regional Banking ETF (KRE). Communication services and information technology, which have enjoyed a strong 2023, both slipped.
"Basically, you have an oversold bounce in these areas that have been beaten up and you're having a pause from some of these areas that are leadership," said Keith Lerner, Truist's co-chief investment officer. "I don't think this is a trend reversal; I don't think this is new leadership."
Markets may also be taking news of First Citizens' plan to buy a large chunk of SVB as a positive, he said.
Earnings season continues Tuesday with results from Walgreens Boots Alliance, Micron Technology and McCormick. Investors also await home price data and The Conference Board's consumer confidence report. The Federal Reserve's Vice Chair for Supervision Michael Barr will also appear before the Senate Banking Committee. He will speak on recent bank failures and federal regulators' response.
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