U.S. stock futures were mixed Tuesday as banks began reporting quarterly earnings. The Nasdaq was tracking for strong gains at Wall Street's open, adding to a four-session winning streak that brought the tech-heavy index within 1.5% of its Sept. 2 record closing high. The Dow Jones Industrial Average and S&P 500 were pacing for losses Tuesday after each logged a fourth straight session of gains.
Heading into the new trading day, the Dow was 2.4% away from its Feb. 12 record closing high. The S&P 500 was 1.3% away from its Sept. 2 record closing high. Shares of Apple and Amazon rose in the premarket after seeing strong advances Monday. Apple releases new iPhones at an event Tuesday. Amazon launched its two-day Prime Day sales event Tuesday morning.
Dow-30 stock JPMorgan Chase rose more than 1% in the premarket after the bank Tuesday morning posted quarterly results that beat estimates on the top and bottom lines. JPMorgan posted third-quarter profit of $9.44 billion, or $2.92 per share, exceeding the $2.23 consensus of analysts surveyed by Refinitiv. The firm generated revenue of $29.94 billion, about $1.5 billion more than what analysts had expected, fueled in part by better-than-expected trading results. Rather than building reserves for loan losses, as it had done aggressively in the first half of the year, the bank actually reduced them by $569 million.
Shares of Citigroup jumped over 1% in premarket trading after the bank reported on Tuesday better-than-expected results for the third quarter as its credit costs from the pandemic stabilized. Citigroup earned $1.40 per share on Q3 revenue of $17.3 billion. Citigroup is in the midst of a major management change, with longtime CEO Michael Corbat to be replaced by his deputy Jane Fraser in February.
Shares of Johnson & Johnson, despite strong quarterly earnings, fell more than 1% in premarket trading after the drug giant's Covid-19 vaccine was put on a pause, not a more serious hold, due to an unexplained illness. Last month, a large trial of another Covid-19 vaccine being developed by U.K. based AstraZeneca and Oxford University was put on hold because of a suspected adverse reaction. The AstraZeneca trial has since resumed everywhere but the U.S.
On Tuesday morning, J&J reported third-quarter earnings and revenue that beat Wall Street's expectations, led by higher sales in its medical-device unit and higher demand for some of its drugs. The company's pharmaceutical business, which is working on the coronavirus vaccine, generated $11.4 billion in revenue, a 5% year-over-year increase. J&J, a Dow component, also raised full-year guidance.
Delta Air Lines (DAL) booked a $5.4 billion net loss for the third quarter after the pandemic roiled what is usually the peak travel period of the year. Shares were down about 3% in the premarket. Delta reported a larger-than-expected adjusted loss on revenue that fell short of estimates.
Disney, which saw its theatrical business crippled during the pandemic as customers opted to watch movies at home, has decided to restructure its media and entertainment divisions. To further accelerate and prioritize its direct-to-consumer streaming video strategy, the company revealed late Monday that it is centralizing those operations into a single organization that will be responsible for content distribution, ad sales and Disney+.
"I would say Covid accelerated the rate at which we made this transition, but this transition was going to happen anyway." CEO Bob Chapek told CNBC's Julia Boorstin on "Closing Bell" on Monday afternoon. Dow-stock Disney rose more than 3% in Tuesday's premarket trading.
One day after returning to the campaign trail with a Florida rally, President Donald Trump on Tuesday goes to Pennsylvania. With three weeks until Election Day on Nov. 3, Trump's robust schedule also brings him to Iowa, North Carolina, Georgia and Wisconsin in the coming days.
The president, himself recovering from Covid-19, defended his response to the pandemic before supporters gathered in Sanford, Florida, on Monday. Emboldened by the White House doctor saying he has tested negative, Trump said he feels "so powerful" because of apparent immunity, and he jokingly added he could walk into the crowd and "kiss everyone."
Trump's decision to so quickly return to campaigning drew criticism from rival Joe Biden and other Democrats. "Trump comes to Sanford today bringing nothing but reckless behavior, divisive rhetoric, and fear mongering," Biden said in a statement. The Democratic president nominee made two campaign stops Monday in Ohio.
— The Associated Press contributed to this report. Follow all the developments on Wall Street in real-time with CNBC's live markets blog. Get the latest on the pandemic with our coronavirus blog.