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Stock futures are little changed as major averages hover near records; Tesla shares slide

Soegeefx AppsUS MarketStock futures are little changed as major averages hover near records; Tesla shares slide

Stock futures were basically flat in early morning trading on Tuesday after the S&P 500 eked out a fresh record close on Monday to kick off November.

Futures tied to the Dow Jones Industrial Average were up by 18 points. S&P 500 futures were flat and Nasdaq 100 futures was lower by 0.15%

All three major U.S. stock indexes hit new intraday highs and closed at records during Monday’s regular session as investors continue to bet on a year-end rally despite supply chain issues, Covid risk and a Federal Reserve that’s about to indicate it’s going to pull back on some stimulus. The Fed’s two-day meeting begins Tuesday.

The S&P 500 has averaged gains of 1.1% in November and 2.3% in December since 1936, notes Bank of America. The final month of the year is in the green 79% of the time, the firm notes. However, Bank of America is cautious.

“We continue to see downside risks ahead,” wrote Savita Subramanian, the bank’s head of U.S. equity and quantitative strategy. “Despite a strong 7% beat, 2021-22 EPS remains largely unchanged, suggesting the upward revision cycle has likely peaked.”

Tesla shares cooled off Tuesday after popping during the end of October. Shares of the electric automaker tumbled 5% premarket, though they are up 55% over just the past month. The drop follows a report that the carmaker is recalling 11,700 of its vehicles due to a communications error, and a tweet from company founder Elon Musk that Tesla has yet to sign a contract with rental giant Hertz.

Pfizer shares were up 1.8% in premarket trading after the drug maker’s third-quarter profit topped expectations. It also raised its 2021 revenue and EPS outlook.

Shares of materials giant DuPont de Nemours fell nearly 4% after the company said it is buying engineering materials technology maker Rogers Corp for $5.2 billion. DuPont also reported a 33% increase in adjusted third-quarter earnings.

Under Armour shares soared nearly 10% after the athletic retailer hiked its annual outlook.

On Monday, the Dow rose 94.3 points. The S&P 500 rose nearly 0.2%. The Nasdaq Composite added 0.6%. The small-cap Russell 2000 gained 2.7%, its best daily performance since August.

The Fed at the conclusion of its two-day meeting on Wednesday is expected to announce it will begin unwinding its $120 billion in monthly bond purchases implemented during the pandemic.

The October jobs report is on Friday.

Source: CNBC

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