The New York stock market is expected to remain firm tonight, supported by expectations for third-quarter earnings releases, while elevated long-term interest rates and developments in the 30-year Treasury auction will be the market's focus.
New York stocks fell for the second consecutive session the previous day, while the US 10-year Treasury yield briefly rose to 5.365%, its highest level since 2002. Rising interest rates weighed on share prices and the Dow fell, but it recovered from its lows in the afternoon on a favorable response to the auction. Although Caterpillar's decline weighed on the Dow, buying back of healthcare and consumer discretionary stocks also supported the downside.
Tonight's market is expected to remain firm while investors assess trends in long-term interest rates. With US long-term interest rates remaining elevated, the focus will be on whether demand at the 30-year Treasury auction can curb the rise in rates, and strong expectations for earnings releases are expected to support the market.
PepsiCo is scheduled to release its earnings before the market opens, and the outlook for earnings growth among S&P 500 constituents is viewed as solid. US stock futures traded in a narrow range after hours, with the market set to await clues from economic indicators and earnings results.
Tonight's economic indicators and events include initial jobless claims, August wholesale inventories and the 30-year Treasury auction.