US stock futures were set to open modestly lower on Tuesday as Wall Street braces for the outcome to Tuesday's pivotal mid-term election, seen as a referendum to President Trump's policies of protectionism and tax reform. Accordingly, sectors in focus Tuesday include multi-nationals like Boeing ( BA ), Caterpillar ( CAT ) and 3M ( MMM ) as well as defense stocks like Lockheed Martin ( LMT ) and United Technologies ( UTX ).
The election overshadowed another heavy slate of corporate earnings with CVS (CVS), Eli Lilly (LLY) and Ralph Lauren (RL) all beating Wall Street's expectations. The deluge continues after Tuesday's close with Wendy's (WEN), Papa John's (PZZA), and Zillow (ZG) reporting.
Overseas markets were mixed with most major Asian bourses higher compliments of Wall Street's positive price action on Monday and an upbeat economic assessment from the Reserve Bank of Australia. Europe was underwater, however, as Italy's unwillingness to compromise on its budget and pressure on auto and retail stocks weighed on indices across the continent.
In commodities, oil futures continue to drift lower with traders responding negatively to the generous terms of the Iranian oil waivers to major importers like China and India, gold futures were underpinned by a weaker dollar, and natural gas futures were reversing some of Monday's outsized gains.
Risk aversion pushed longer dated Treasury yields lower while the dollar is losing ground against the major currencies, driving the dollar index lower for a second straight day.
Tuesday's economic calendar is light with only the September job opening and labor turnover survey (JOLTS), expected to drop slightly from August's 7.136 million to 7.110 million.
-Dow Jones Industrial down 0.16%
-S&P 500 futures down 0.20%
-Nasdaq 100 futures down 0.27%
Nikkei up 1.14%
Hang Seng up 0.72%
Shanghai Composite down 0.23%
FTSE-100 down 0.79%
DAX-30 down 0.17%
PRE-MARKET SECTOR WATCH
(-) Large cap tech: Lower
(-) Chip stocks: Lower
(-) Software stocks: Lower
(-) Hardware stocks: Lower
(-) Internet stocks: Lower
(-) Oil stocks: Lower
(+/-) Biotech stocks: Mixed
(+/-) Drug stocks: Mixed
(-) Financial stocks: Lower
(-) Retail stocks: Lower
(+) Industrial stocks: Higher
(-) Airlines: Lower
(-) Autos: Lower
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(+) ELF (+18.83%) Beat Q3 EPS and sales expectations
(+) MOR (+17.72%) Reported better-than-expected quarterly results
(+) AFI (+15.12%) Missed revenue expectations
(+) FN (+10.62%) Q1 earnings beat estimates
(-) FTDR (-26.32%) Q3 earnings misses estimates as revenue beat expectations
(-) EMES (-26.07%) Swung to an unexpected loss, sales below estimates
(-) GSKY (-21.89%) Missed revenue estimates, lowered full year EPS guidance
(-) NEOS (-14.81%) Unveils common stock offering