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Flat stock futures as investors await the start of the earnings season

People walk near the New York Stock Exchange (NYSE) in Lower Manhattan on October 2, 2020 in New York City.

Spencer Platt | Getty Images

US stock futures remained unchanged in overnight trading on Tuesday as investors awaited the first batch of corporate earnings and updates on a stimulus package.

Dow futures are up 1

0 points. The S&P 500 and Nasdaq 100 futures gained 0.04% and 0.1% respectively.

Futures rallied as Disney rallied more than 5% in after hours trading after announcing a major corporate reorganization with streaming at the forefront of its business. Disney said it will centralize its media operations into a single organization that will be responsible for content distribution, ad sales and Disney +.

The third quarter earnings season begins Tuesday with several major banks expected to report their results, including JPMorgan Chase, Citigroup and Delta Air Lines. Third quarter results are expected to decline significantly; however, traders are hoping for a surprise to the upside.

On Monday, investors switched from cyclical to tech names after minor updates on a tax aid package were revealed. The Dow Jones Industrial Average was up 250 points and the S&P 500 gained 1.64%, both helped by a 6.4% rise in Apple stock.

Apple’s long-awaited iPhone launch, which has been postponed to October due to Covid-19, occurs on Tuesday and the company is expected to launch its first-ever 5G iPhone. It will be “the most significant iPhone event in years,” Morgan Stanley’s Katy Huberty told customers.

With tech stocks in the lead, the Nasdaq Composite gained 2.56% on Tuesday, for its best day since September 9.

Investors have also considered the possibility of a second coronavirus aid package from Washington. Over the weekend, the Trump administration called on Congress to pass a smaller $ 1.8 billion coronavirus bill as negotiations on a larger package continue to encounter roadblocks. However, House Speaker Nancy Pelosi in a letter to colleagues said the proposal had insufficient bids on health issues.

“This hardly seems like a ‘stimulus’ anymore,” Jim Paulsen, chief investment strategist at Leuthold Group, told CNBC. The S&P 500 index has recovered near its all-time highs today driven by growth: the technology, communications and consumer discretionary sectors. “

“Recently, the stock market has risen whether the news surrounding an additional stimulus package is good or bad, suggesting that stocks are already responding to what is likely to prove to be a wonderful quarterly earnings season,” Paulsen added.

BlackRock and Johnson & Johnson are also reporting quarterly earnings before Tuesday’s bell.

Amazon’s Prime Day begins on Tuesday, and the two-day event could mark the biggest online shopping day of the year, according to NPD, with 57% of consumers planning to do some if not all of their Christmas shopping this week. .

The Department of Labor will release the September Consumer Price Index on Tuesday at 8:30 am ET. Economists surveyed by FactSet expect prices to rise by 0.2%. The price increased 0.4% in August, helped by gains in the cost of gasoline.

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