S&P 500, Dow set for record open as investors eye tech earnings

The S&P 500 and the Dow were set for record open on Tuesday as Facebook rose after its quarterly results and a share buyback plan, turning the spotlight on its technology peers set to report later in the day.

Facebook Inc rose 0.8 per cent in premarket trading even as the social media giant warned that Apple Inc's new privacy changes would weigh on its digital business in the current quarter. The company announced $50 billion in share buybacks, while posting a 17 per cent rise in third-quarter profit.

"Facebook has had a few weak sessions lately and it beating profit estimates for the quarter has provided support to the stock, but it is not out of the woods yet with a lower guidance leading to some caution among investors," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.

Shares of Twitter Inc, which also generates revenue by selling digital ads, added 1.4 per cent ahead of its results on Tuesday.

Eyes are also on quarterly updates from Alphabet Inc and Microsoft Corp after market close, with a focus on how Google's ad revenue fares. Their shares, coupled with other growth names Amazon.com and Apple, were up between 0.3 per cent and 1.5 per cent.

United Parcel Service Inc gained 4.0 per cent after the delivery firm reported a 23 per cent rise in quarterly profit, bolstered by high e-commerce demand.

Some stellar earnings reports have helped drive the Dow and the S&P 500 to record highs, lifting investor sentiment in October after concerns around inflation, the Fed's tapering and property group China Evergrande's crisis rattled markets last month. The tech-heavy Nasdaq is trading about 1.2 per cent below its Sept 7 record high.

Earnings at S&P 500 companies are expected to grow 34.8 per cent year-on-year for the third quarter, with market participants assessing how companies are navigating supply-chain bottlenecks, labor shortages, and inflationary pressures. Industrial conglomerates General Electric Co and 3M Co flagged concerns around global supply chain disruptions and soaring raw material prices hitting their businesses.

Though shares of General Electric rose 1.5 per cent after it raised its full-year earnings forecast, 3M Co slipped 0.6 per cent on lowering its annual profit outlook.

"Inflation and supply chain troubles don't seem to be an issue in the near term as the market right now is just focused on the quarterly performance and with calm benchmark rates, it only helps with the mood," Pavlik said.

At 8:44 am ET, Dow e-minis were up 114 points, or 0.32 per cent, S&P 500 e-minis were up 17.75 points, or 0.39 per cent, and Nasdaq 100 e-minis were up 88.75 points, or 0.57 per cent.

On the economic data front, consumer confidence data for October is due at 10 a.m. ET.

Gains in economically sensitive industrials Boeing Co and Caterpillar Inc also boosted the futures tracking the blue-chip Dow.

Tesla Inc slipped 0.7 per cent, a day after the electric-carmaker surpassed $1 trillion in market value after landing its biggest-ever order from rental car company Hertz.

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