© Reuters.
By Peter Nurse
Investing.com — U.S. stocks are seen opening higher Tuesday, starting the new month on a positive note as the earnings season continues ahead of the start of an important policy-setting meeting by the Federal Reserve.
At 07:00 ET (11:00 GMT), the contract was up 225 points, or 0.7%, traded 38 points, or 1%, higher, and climbed 140 points, or 1.2%.
The main U.S. equity indices closed lower Monday, but October was otherwise a strong one despite some disappointing results from Big Tech and jitters about the Federal Reserve’s next move.
The blue-chip gained 14% last month, its best since 1976, as investors rotated out of technology and into defensive stocks as well as the banks with interest rates rising. The and added approximately 8% and 4%, respectively.
Quarterly earnings continue Tuesday with Uber (NYSE:) and Pfizer (NYSE:) due before the bell and Advanced Micro Devices (NASDAQ:) and Airbnb (NASDAQ:) after.
Tesla (NASDAQ:) will also be in the spotlight after Reuters reported that the electric vehicle manufacturer aims to start mass production of its Cybertruck at the end of 2023, two years after the initial target for the long-awaited pickup truck.
Energy giant BP (NYSE:) a third-quarter profit of $8.15 billion, the second-largest in its history, and announced another $2.5 billion in share buybacks.
Away from the corporate sector, the starts its latest two-day policy-setting meeting later Tuesday, with investors expecting another 0.75 percentage point increase in interest rates when it announces the decision tomorrow.
Attention is likely to be more on what Chair Jerome Powell says and signals during his press conference Wednesday afternoon, amid rising confidence that the Fed will start to ease off the pace of rate increases as it sees evidence that parts of the market are cooling off.
The economic data slate is crowded Tuesday, including the for October, and September . Most eyes, however, will be on the report, at 10:00 ET (14:00 GMT), ahead of Friday’s official jobs report for October.
Oil prices rose Tuesday, paring losses from the previous session, with a weaker helping boost confidence that has been hit by a resurgence in COVID-19 cases in China, the world’s largest crude importer.
Also boosting sentiment was the decision of the Organization of Petroleum Exporting Countries to lift its medium to long term demand forecasts, saying on Monday in its 2022 World Oil Outlook that demand will be higher than initially expected in the medium to long term, and will likely plateau by only 2045.
The reveals its estimate for weekly U.S. crude inventories later in the session, with last week showing a build of over 4.5 million barrels.
By 06:00 ET, futures traded 1.7% higher at $88.01 a barrel, while the contract rose 1.8% to $94.45. Both benchmarks fell over 1% on Monday.
Additionally, rose 0.9% to $1,654.75/oz, while traded 0.5% higher at 0.9932.
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