Sentiment appears to have dipped after a six-session winning streak. Stock futures indicate a modestly lower opening on Tuesday as small and mid-cap earnings reports gain momentum. Reaction to earnings has been mixed, adding to the prevailing uncertainty. The day is expected to be dominated by a series of Federal Reserve speeches. Oil prices are retreating due to mixed China data, and bond yields are slipping.
Stocks traded lacklusterly on Monday as traders took a breather following recent gains. Comments by Federal Reserve Governor Lisa Cook, leaning towards dovishness, encouraged traders to stay invested in stocks. The Fed’s senior loan officer survey results showed decreased loan demand and continued tightening of credit terms by banks in the third quarter, albeit at a slower pace.
