© Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., October 20, 2023. REUTERS/Brendan McDermid/File Photo
By Shubham Batra and Shashwat Chauhan
(Reuters) – Wall Street’s main indexes were set to open higher as a selloff in U.S. Treasuries eased on Tuesday, while shares of General Electric (NYSE:) and Coca-Cola (NYSE:) surged on upbeat forecasts.
General Electric jumped 5.9% in premarket trading after the aircraft engine manufacturer lifted its full-year profit forecast, while Coca-Cola advanced 2.8% on raising its annual sales outlook.
General Motors (NYSE:) added 1.3% after beating third-quarter profit estimates, while 3M gained 4.5% after raising its full-year adjusted profit forecast.
The yield on the 10-year Treasury note was last at 4.8504%, after breaching the 5% mark in the previous session.
“Yesterday, Bill Ackman, head at Pershing Square, (who’s) been very bearish on U.S. bonds for a number of months closed that bearish position … he’s got a very good track record from a macro perspective of calling things well in the past,” said Dan Boardman-Weston, chief executive officer at BRI Wealth Management.
“The impact that interest rates have on an economy are lagged, so we’re only now just really starting to see those rate increases bite and start to impact the underlying economy.”
Megacaps including Apple (NASDAQ:), Tesla (NASDAQ:), Meta Platforms (NASDAQ:) and Amazon.com (NASDAQ:) rose between 0.2% and 2.4%.
U.S. technology giants are expected to post their strongest quarterly revenue growth in at least a year as their legacy businesses have stabilized, with Microsoft (NASDAQ:) and Alphabet (NASDAQ:) scheduled to report results after markets close on Tuesday.
Of the 86 companies in the that have reported earnings so far, 78% have topped analysts’ expectations, LSEG data showed. Overall, third-quarter earnings are expected to rise 1.2% year-on-year.
The benchmark index has fallen sharply from its July highs on worries the Federal Reserve could keep its monetary policy restrictive for longer than expected against the backdrop of a still-strong economy, though the index is up nearly 10% this year as of last close.
On the data front, investors will closely monitor the S&P Global Purchasing Managers’ Index for manufacturing and services to assess the strength of the American economy.
The Commerce Department will announce third-quarter GDP on Thursday, which is seen accelerating to 4.3%. Its wide-ranging Personal Consumption Expenditures (PCE) report is due on Friday.
The turmoil in the Middle East is also in focus as Israel intensifies its assault on Hamas in Gaza.
At 8:37 a.m. ET, were up 164 points, or 0.5%, were up 24.75 points, or 0.58%, and were up 87.5 points, or 0.59%.
Nvidia (NASDAQ:) rose 1.4% after Reuters reported the chip giant had quietly begun designing central processing units that would run Microsoft’s Windows operating system and use technology from Arm Holdings (NASDAQ:).
Peer Arm was up 2.4% while Intel (NASDAQ:) was down 0.4%.
Verizon (NYSE:) added 4.1% after the U.S. wireless carrier raised its annual free cash flow forecast.
Shares of Coinbase (NASDAQ:), Riot Platforms and Marathon Digital (NASDAQ:) rose between 8.4% and 14.7% as jumped to a more than one-year high.
