US pre-open: Futures in the red as bond yields rise ahead of more earnings
By Iain Gilbert
Date: Tuesday 18 Jan 2022
(Sharecast News) - Wall Street futures were in the red ahead of the bell on Tuesday as market participants prepared for another batch of corporate earnings and kept one eye on government bond yields that were now at pandemic-era highs.
As of 1210 GMT, Dow Jones futures were down 0.67%, while S&P 500 and Nasdaq-100 futures had the indices opening 1.05% and 1.69% lower, respectively.
The Dow closed 201.81 points lower on Friday before taking a break on Monday for the Dr Martin Luther King Jr holiday long weekend.
Bond yields were firmly in focus prior to the open, with the yield on the benchmark 10-year Treasury note hitting 1.83% early on Tuesday, the highest level seen since January 2020, while the 2-year yield broke above 1% for the first time since February 2020.
The Covid-19 Omicron variant was also in focus, with questions now being raised regarding the state of the global economic recovery, with a number of countries and regions reinstating lockdowns and other social distancing measures as part of an effort to curb the spread of the variant.
In the corporate space, Bank of New York Mellon's latest quarterly earnings revealed profits that were in line with expectations, while Goldman Sachs was also scheduled to report earnings before the open.
Netflix and United Health earnings were set to follow later in the session.
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