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U.S. stock futures rose Tuesday, with Treasury yields essentially unchanged, as investors sought to recoup some of yesterday’s tech-led declines while watching developments in the Middle East and a major sell-off in China.
Updated at 7:21am EDT
No fizz
PepsiCo (PEP) Shares fell in pre-market trading after the drinks and snacks group cut its full-year sales forecast following a muted earnings report.
PepsiCo reported a revenue decline of 0.6% in the three months ended September 7, the group’s third fiscal quarter, and said full-year sales would rise by “low single digits,” down from to the previous estimate of a 4% increase.
PepsiCo shares were marked down 1.2% in premarket trading to point to an opening price of $165.23, a move that would extend the stock’s six-month decline to about 3%
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Stocks closed sharply lower Monday, with the S&P 500 down just under 1% and the Nasdaq down 1.18% following a series of downgrades on big tech names by Wall Street analysts , including Apple. (AAPL) Amazon (AMZN) and Google’s parent company, Alphabet (GOOGLE) which dampened investor sentiment.
A sharp upward move in Treasury yields, as well as a rally on oil supply concerns tied to the ongoing war in the Middle East region, contributed to the session’s negative tone. The Vix volatility index hit its highest levels since early September.
The focus of Tuesday’s session is likely to remain tied to the bond market, with a $58 billion auction of new 3-year notes expected later today, the first of three coupon sales expected to raise $117 billion this week.
Benchmark 10-year bond yields were marked at 4.014% early in the New York trading session, with 2-year notes pegged at 3.965%.
The US dollar index, which tracks the greenback against a basket of six global currencies, was marked down 0.15% at 102.384.
On Wall Street, stocks are set to post a modest rally in early trading, with the S&P 500 priced for an opening gain of about 22 points and the Dow Jones Industrial Average called 40 points higher.
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The tech-focused Nasdaq, meanwhile, is priced for a 95-point opening gain thanks to Nvidia’s premarket advances (NVDA) Tesla (TSLA) and advanced micro devices (AMD) .
Other stocks on the move include Honeywell (HONOR) which was marked up 2.8% following a Wall Street Journal report suggesting it may spin off its advanced materials division.
In overseas markets, European shares remained stuck in the red following yesterday’s weak session on Wall Street and a sell-off in Asian stocks overnight, with the Stoxx 600 down 0.82% in early trading in Frankfurt.
Other Wall Street analysts:
China’s economic planning chief, Zheng Shanjie, briefed reporters in Beijing on the government’s stimulus plan. But he provided few details on how he will direct billions in new aid planned to meet aggressive growth targets for the year.
That triggered a big reversal of gains in the region, and although benchmarks in Shanghai and Shenzhen posted solid gains after the Golden Week holiday break, Hong Kong shares fell 9.4% at the close, the biggest decline in a single day since 2008.
Japan’s Nikkei 225, meanwhile, closed 1% lower in Tokyo as technology stocks weakened and the yen found favor against the dollar amid broader Asian selling.
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