U.S. stock futures were little changed in early Wednesday morning trade after the S&P 500 rose to another fresh record during the Tuesday regular session.
Dow Jones Industrial Average futures were 20 points lower. S&P 500 futures also sat near the flatline while Nasdaq 100 futures were in mildly positive territory.
A strong earnings season continued after the bell Tuesday with Lyft and Caesars Entertainment reporting stronger-than-expected results for the second quarter and citing a rebound to pre-pandemic levels of activity. Lyft and Caesars each rose more than 3.5% in extended trading.
In the regular trading session, the Dow Jones Industrial Average jumped 278 points, or 0.8%, to 35,116.40. The S&P 500 gained 0.8% to a new all-time closing high of 4,423.15. The Nasdaq Composite rose 0.6% to 14,761.29.
Those gains followed an early morning slump during which equities across the board were mostly in the red after the 10-year Treasury yield fell to 1.15% Monday. The decline in the bond yield was driven by concerns about the spread of the delta coronavirus variant and comments by Federal Reserve Governor Christopher Waller, who told CNBC that the central bank could start tapering its bond purchases as early as October.
The 10-year Treasury yield inched slightly higher to 1.17% Tuesday. Lower bonds yields tend to set a more bearish tone for equities, which can be confounding to some, but investors expect August to be a period of more volatility for equities in their second year of a bull run.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, July 15, 2021.
Brendan McDermid | Reuters
Earnings season continues Wednesday with Toyota and General Motors set to report before the bell. Travel stocks MGM Resorts, Wynn Resorts and Booking Holdings will report after the bell.
Investors will also be keeping an eye on employment data being released by ADP Wednesday.
