Dow futures just lower; Microsoft. Alphabet earnings in focus

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Investing.com -- U.S. stock futures traded in a mixed fashion Tuesday, as investors prepare for results from tech titans Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) as well as the start of the eagerly awaited two-day Federal Reserve policy-setting meeting.

By 06:30 ET (10:30 GMT), the Dow Futures contract was down 20 points, or 0.1%, while S&P 500 Futures traded 3 points, or 0.1%, higher and Nasdaq 100 Futures climbed 44 points, or 0.3%.

The benchmark indices on Wall Street started the new week in a positive fashion on Monday, with the blue chip Dow Jones Industrial Average extending its winning streak to eleven sessions, gaining nearly 200 points, or 0.5%, to record its highest close since February 2022.

The broad-based S&P 500 also gained 0.4%, and the tech-heavy Nasdaq Composite closed 0.2% higher, as a stronger-than-expected earnings season to date has boosted market confidence.

Microsoft, Alphabet set to publish earnings

The tech sector is likely to be in focus Tuesday, with Microsoft and Google-owner Alphabet scheduled to post their latest earnings after the close, kicking off two weeks of results from big-name technology firms.

For both Microsoft and Alphabet, attention will likely center around their cloud computing businesses. The units have been consistent cash cows for both companies, although performance has suffered in recent quarters as economic uncertainty convinces many customers to rein in spending.

Results are also expected from the likes of General Electric (NYSE:GE), General Motors (NYSE:GM) and Verizon (NYSE:VZ) before the open.

Fed starts two-day meeting

The Federal Reserve starts its two-day policy meeting later Tuesday, before announcing its decision the following day. The central bank is widely expected to raise rates another quarter of a percentage point, so investors will be more concerned about what Chair Jerome Powell says during his press conference for clues to the direction of future rate policy.

Expectations are growing that Wednesday’s likely increase will be the final hike of its most aggressive monetary policy tightening cycle in decades, a thesis that has helped buoy stocks in recent weeks.

Also of interest will be the release of the consumer confidence data for July, which is expected to edge higher from the previous month.

Crude market consolidates

Oil prices stabilized just below three-month highs on optimism of further Chinese stimulus amid signs of tight supplies ahead of the Federal Reserve policy-setting meeting.

The focus will also be on U.S. inventory data, with industry data from the American Petroleum Institute due later Tuesday followed on Wednesday by the official numbers from the Energy Information Administration.

Stockpiles are expected to have fallen by over 2 million barrels in the week to July 21, indicating steady demand in the world’s largest oil consumer.

By 06:30 ET, the U.S. crude futures traded 0.1% higher at $78.81 a barrel, while the Brent contract climbed 0.1% to $82.50.

Both benchmarks rose over 2% in the previous session, closing at the highest level since April.

Additionally, gold futures rose to $1,962.45/oz, while EUR/USD traded 0.1% lower at 1.1046.

(Oliver Gray contributed to this item.)