U.S. stock futures point slightly higher following mixed trading in the previous session, with a bevy of corporate earnings and economic data in focus. U.S. President Donald Trump is set to soften his tariffs on automakers, according to the Wall Street Journal. Gold prices inch down as investors eye a possible easing in the White House’s approach to its aggressive tariff agenda.
1. Futures edge higher
U.S. stock futures hovered above the flatline on Tuesday after a volatile session to begin the trading week, as investors geared up for crucial earnings reports and economic data.
By 03:21 ET (07:21 GMT), the Dow futures contract had inched up by 53 points, or 0.1%, S&P 500 futures had climbed by 10 points, or 0.2%, and Nasdaq 100 futures had advanced by 43 points, or 0.2%.
On Monday, the blue-chip Dow Jones Industrial Average and benchmark S&P 500 both eked out gains. Meanwhile, the tech-heavy Nasdaq Composite dipped by 0.1%, weighed down in part by shares in Nvidia (NASDAQ:NVDA). The artificial intelligence-darling’s stock price dropped after the Wall Street Journal reported over the weekend that China’s Huawei Technologies was preparing to test a new AI chip that could replace some of Nvidia’s cutting-edge offerings.
Markets are also keeping close tabs on a raft of quarterly reports from mega-cap tech names this week, including iPhone-maker Apple (NASDAQ:AAPL), Facebook-parent Meta Platforms (NASDAQ:META), software giant Microsoft (NASDAQ:MSFT), and e-commerce titan Amazon (NASDAQ:AMZN).
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. All of these firms are reporting with questions swirling around the future trajectory of U.S. President Donald Trump’s erratic tariff agenda. Several businesses have already flagged that the levies have clouded their investment plans.
"Given the ongoing uncertainty around U.S. trade policy and the economic outlook more broadly, we suspect the going will get tougher from here," said Jonas Goltermann, Deputy Chief Markets Economist at Capital Economics, in a note.
2. Trump to ease auto tariffs - WSJ
Trump is tipped to partially ease the effect of his tariffs on autos, blocking duties on cars made overseas from stacking on top of broader levies he has imposed, according to the Wall Street Journal.
Citing people familiar with the matter, the Journal added that some tariffs on foreign parts used to manufacture cars in the U.S. will be relaxed as well.
The moves will mean that autos will not need to pay higher tariffs for items like steel and aluminum, the WSJ said, noting that the carmakers will also be able to ask for reimbursement for any tariffs they have already paid. Auto companies were able to secure these actions by committing to help advance Trump’s goal of promoting domestic manufacturing.
Trump is anticipated to unveil the changes prior to a rally outside of Detroit, Michigan on Tuesday, the paper said.
Analysts at Vital Knowledge flagged that recent media reports have already suggested that the White House was considering altering its approach to auto tariffs. But they said the car industry will still face relatively elevated tariffs even after the moves come into effect.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. More reaction to the Journal’s report could come when General Motors (NYSE:GM) reports ahead of the market open on Tuesday. GM CEO Marry Barra told the paper that conversations with Trump have been "productive", while rival Ford said it "welcomes and appreciates" the president’s decisions.
3. Earnings ahead
A parade of corporate earnings marches on today, as part of a busy week that will see 180 S&P 500 components report quarterly results.
Highlighting the slate of results prior to the open on Tuesday are beverage maker Coca-Cola (NYSE:KO), drug company Pfizer (NYSE:PFE), and streaming music service Spotify (NYSE:SPOT). Credit card provider Visa (NYSE:V) is also due to report after the bell, as well as coffee house chain Starbucks (NASDAQ:SBUX) and Oreo-maker Modelez.
Forecasts from these businesses will likely be a central focus for investors, especially after a host of firms have either slashed or withdrawn their guidance due to a murky outlook for U.S. trade policy.
Still, first-quarter earnings from S&P 500 groups are estimated to have risen by 10.9% versus the prior year, LSEG data cited by Reuters showed.
4. JOLTS, consumer confidence data due
Along with earnings, the economic calendar is also full of potentially consequential figures which analysts say could provide early insight into the impact of Trump’s trade plans.
Highlight the agenda today will be the Job Openings and Labor Turnover Survey, a closely-monitored gauge of job demand in the U.S. The numbers will serve as a precursor to the all-important monthly nonfarm payrolls report later this week.
"[A]ny sharp fall [in the JOLTS data] could trigger another leg lower in the dollar on the view that tariff uncertainty will drive unemployment higher," analysts at ING said in a note to clients.
"The jobs data also seems key for the Federal Reserve, where board member Christopher Waller has said that the central bank could cut earlier and more deeply if unemployment rises sharply -– although this may be something for the late summer when we know more about whether reciprocal tariffs will be reinstated after their 90-day pause."
The Consumer Board’s Consumer Confidence survey, a possible fresh look into how households feel about the state of the economy, is due out as well.
On Wednesday, the key item will be the first reading of U.S. growth for the first quarter. Gross domestic product in the world’s largest economy is projected to slowed to 0.4% during the January to March period, down from 2.4% in the fourth quarter.
5. Gold inches down
Gold prices slipped on Tuesday, after the WSJ reported that the Trump administration is planning to ease the impact of auto tariffs.
In an interview with CNBC on Monday, Treasury Secretary Scott Bessent said many countries have offered "very good" tariff proposals to the U.S. He also stated that the Washington is in contact with China and that it is up to Beijing to de-escalate the situation.
Investors were also cautiously awaiting U.S economic indicators this week, which will include the Fed’s preferred inflation metric -– the PCE price index.
