U - Stocks Futures Signal Cautious Optimism Amid Hopes Of Fed Pause PepsiCo's Solid Q3; Focus Shifts To Week's Inflation Data | Benzinga
U.S. stocks could be prepping for a cautious start on Tuesday, as evident from the modestly higher stock futures. PepsiCo, Inc.‘s (NASDAQ:PEP) strong third-quarter report should pep up expectations concerning a positive earnings season. Bond yields continue to ease as traders bake in expectations for a pause at the month-end Federal Reserve rate-setting meeting.
That said, the inflation reports due Wednesday and Thursday could serve to keep sentiment guarded. Traders may also closely monitor the message relayed by a trio of Fed speeches scheduled for the day.
Cues From Monday’s Trading:
Stocks advanced on Monday as traders showed resilience and looked past the geopolitical tensions set in motion by the Israeli-Hamas conflict. The major indices opened lower and languished mostly in negative territory until the mid-session.
A steady recovery followed, taking the averages past the flat line, as Fed officials hinted at less likelihood of a rate hike in the aftermath of rising bond yields. The indices consolidated their gains in late-afternoon trading.
The major averages all closed higher for a second straight session, ending at their highest levels since late September.
All the S&P 500 sector classes gained ground in the session, with energy stocks outperforming among the pack. Industrial, real-estate, and utility stocks also saw notable gains.
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