From the Wall Street Journal’s "Stock Futures Edge Higher Ahead of Major Earnings" posted early Tuesday:
U.S. stock futures ticked up ahead of a slew of earnings that investors will parse for insight into how companies are faring with inflation and supply-chain disruptions.
A spate of companies are due to report quarterly earnings ahead of the market open, including Johnson & Johnson, Bank of New York Mellon, Travelers, Procter & Gamble and Philip Morris International. Netflix will report earnings after the closing bell.
Investors are using earnings and companies’ guidance for the future to assess how corporations are faring with a number of issues. Inflation is expected to be stickier than originally anticipated by central-bank officials, exacerbated by continued supply-chain disruptions, higher energy costs and labor shortages. About 81% of S&P 500 companies that have reported so far have beat earnings-per-share expectations, according to FactSet data through early Monday.
“It is a market now where you’re going to see more differentiation because it is a more challenging environment,” said Daniel Morris, chief market strategist at BNP Paribas Asset Management. “If you look at earnings so far, ex-financials, it’s been very good.”
My take: Eight more trading days before Q4 earnings. Max pain is still stuck at $141, but there's a mountain of calls at $150.