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US Equity Futures Fall Pre-Bell Tuesday as Global Bond Yields, Oil Prices Rise

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US equity futures were edging lower pre-bell Tuesday as concerns about inflation and higher oil prices lifted global bond yields while technology-related stocks slipped.

Dow Jones Industrial Average futures were 0.5% lower, S&P 500 futures were down 0.5%, and Nasdaq futures were 1% lower.

The US 10-year Treasury note yield reached a 20-month high, rising 3 basis points to trade at 4.7880%, while borrowing costs in Japan and the UK attained multi-decade highs.

Traders digested the latest round of earnings, with Medtronic (MDT) posting higher fiscal Q1 adjusted earnings and revenue.

Palo Alto Networks (PANW) is expected to report its fiscal Q4 results after the market closes. Analysts polled by FactSet expect earnings of $0.98 per share on revenue of $3.35 billion.

Oil prices were higher, with front-month global benchmark North Sea Brent crude up 4% at $91.93 per barrel and US West Texas Intermediate crude 2.2% higher at $87.64 per barrel.

The final S&P Global manufacturing purchasing managers index for August, due at 9:45 am ET, is seen at 53.4, up from its prior value of 53.2, according to estimates compiled by Bloomberg.

The August Institute for Supply Management's manufacturing index, due at 10 am ET, is projected at 55.2, down from 55.6 in the previous month. July job openings from the US Department of Labor's Job Openings and Labor Turnover Survey are expected at 7.313 million, compared with 7.359 million in the prior month. The July construction spending report is also due at 10 am ET.

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Japan

US Equity Markets End Lower After Crude Oil, Government Bond Yields Rise Following US-Iran Military Escalation

US equity indexes ended lower Monday after crude oil prices and government bond yields rose following US-Iran military escalation.* Iran and the US traded attacks for the first time in over a month overnight into Monday, CNN reported. Iran said it attacked US bases in Jordan and US military targets at the Al Minhad airbase in the United Arab Emirates after US forces bombed two rocket launchers on Iran's Larak Island, according to a report from Al Jazeera.* The Dallas Fed's monthly manufacturing index jumped to 11.6 in August from 1.3 in July, above expectations for 1.6 in a survey compiled by Bloomberg, indicating a faster pace of expansion.* October West Texas Intermediate crude oil rose $2.58 to settle at $85.98 per barrel, while November Brent crude, the global benchmark, was last seen up $2.35 at $90.45.* Tesla (TSLA) is selling a simplified version of Model 3 at a lower price in Hong Kong and Macau than in mainland China, according to media reports and the company's regional websites. Shares were up about 5.5%, the top gainer on the S&P 500 and Nasdaq.* Shares of PG&E (PCG) and Edison International (EIX) were down over 20%, the worst performers on the S&P 500, after ABC7 reported Sunday that California amended legislation to protect wildfire survivors' right to sue utilities for equipment-caused blazes.

Dow JonesNasdaq CompositeS&P 500$EIX$PCG$TSLA
Japan

Update: US Equity Indexes Fall Amid Gains in Crude Oil, Benchmark Treasury Yield

(Updates with index/price moves and geopolitical news from the first paragraph.)US equity indexes fell as crude oil jumped amid renewed Washington-Tehran military escalation and the 10-year government bond yield rose to its highest in about a month.The Nasdaq Composite fell 0.2% to 26,339.3, the S&P 500 retreated 0.3% to 7,686.7, and the Dow Jones Industrial Average slid 0.6% to 53,259.1 ahead of Monday's close. All sectors, except energy and technology, declined. Communication services led decliners, followed by utilities and industrials.Iran's military has reiterated a warning to the region not to allow the US military to launch attacks from their soil or risk retaliation, Al Jazeera, a Middle Eastern broadcaster, reported."As we have demonstrated on the ground, while respecting the national sovereignty of our neighbours, we will never tolerate any form of aggression and will respond with a far heavier retaliation," Al Jazeera cited a military statement."Those facilitating US aggression against the Islamic Republic of Iran should know that our powerful armed forces -- the IRGC and the Army, standing shoulder to shoulder -- will decisively target the source of any aggression."The front-month US West Texas Intermediate crude oil contract advanced 2.7% to $85.69 per barrel, and global benchmark North Sea Brent climbed 2.5% to $90.32 per barrel.US Treasury yields were mixed in the final leg of trading. The 10-year yield climbed 3.4 basis points to 4.76%, the highest since July-end, while the two-year was steady at 4.35%. The 30-year yield jumped 4.5 basis points to 5.25%.

Dow JonesNasdaq CompositeS&P 500
Japan

Update: US Equity Indexes Fall, Crude Oil Jumps as Iran Hostilities Resume

(Updates with index/price moves and company/geopolitical news from the first paragraph.)US equity indexes declined as investors weighed renewed Washington-Tehran military escalation amid higher crude oil prices.The Nasdaq Composite fell 0.5% to 26,276.1, the S&P 500 retreated 0.5% to 7,676.2, and the Dow Jones Industrial Average slid 0.7% to 53,204.2 after midday Monday.All sectors, except energy, declined. Communication services led decliners, followed by utilities, industrials, and real estate.President Donald Trump said the US will respond to an Iranian attack on US forces overnight in Jordan, Fox News reported. US air defenses intercepted all but one Iranian missile, which was allowed through because it was not expected to hit anything of consequence, the report said, citing the president.The front-month US West Texas Intermediate crude oil contract jumped 2.7% to $85.67 per barrel, and global benchmark North Sea Brent surged 3% to $90.68 per barrel.US Treasury yields were mixed after midday. The 10-year yield climbed 3.8 basis points to 4.76%, while the two-year fell 1.1 basis points to 4.34%.

Dow JonesNasdaq CompositeS&P 500