U.S. equity futures edged higher on Tuesday as investors waited for more corporate earnings reports to assess the business climate.
Futures contracts linked to the S&P 500 rose 0.3%, indicating that the broad benchmark of the market gained ground at the opening bell after losing 0.2% on Monday. Contracts linked to the Nasdaq-100 gained 0.2% and futures contracts linked to the Dow Jones Industrial Average rose 0.4%.
A strong wave of corporate results helped bolster optimism that stocks can continue to advance after an already strong rally this year. Investors say continued support from central banks and economic data that still shows growth will further support stocks.
“The earnings season has been pretty strong and that justifies the positive mid-term outlook we have on equities,” said Justin Onuekwusi, head of retail multi-asset funds at Legal & General Investment Management. “Profits are generally still above analysts’ average estimate, but for the second quarter in a row, they are above the highest estimates, which is pretty unprecedented.”
Eli Lilly, KKR, ConocoPhillips and Marriott International are among the companies expected to report before the market opens. Lyft, Activision Blizzard and Amgen will release their results after markets close.