Stock futures gained Tuesday morning, erasing declines a day earlier as a number of closely watched companies beat quarterly earnings estimates.

S&P 500 contracts rose after the blue chip index ended a choppy session lower on Monday. The Dow Jones also indicated a higher open, after the index hit a record intraday high on Monday before closing in the red.

Under Armor (UAA) stock rose after the sportswear maker topped second-quarter sales estimates and boosted its full-year profit outlook. Simon Property Group (SPG) shares also rose after the company released second quarter results that far exceeded estimates, raised its guidance and increased its dividend, with the mall’s real estate operator seeing rates of occupancy and foot traffic improve as the economy reopens. Shares of video game maker Take-Two Interactive (TTWO), however, fell early in the session after the company’s guidance for the current quarter fell short of estimates, eclipsing an otherwise better-than-expected impression. earnings and sales for its last quarter.

Overall, the three major stock indexes have drifted in the past session as investors expect more catalysts for business results, economic data and policymakers.

“We’re going through a few transitions right now,” George Mateyo, chief investment officer at Key Private Bank, told Yahoo Finance. “The first, of course, is this deceleration in growth. We’ve seen this massive take-off and growth since the pandemic.”

“Second, we have to deal with the Fed and its transition as well, both on the leadership side and also on the policy side,” he added. “And then third … we also have the Delta variant to consider, in terms of the potential transition to a new wave of cases in the COVID-19 situation.”

As for growth prospects, the employment report released by the Labor Department on Friday in July will help better understand how much the labor market has recovered this summer and whether the economy is approaching the recovery threshold. to cause a pivot. to the Federal Reserve’s ultra-supportive monetary policy. And on Tuesday, companies such as Lyft (LYFT), Match Group (MTCH) and Avis Budget Group (CAR) are expected to release quarterly results.

The story continues

Despite Monday’s drift, stocks still hold near record highs, supported by the combination of broadly strong second quarter results, an ongoing economic recovery and a still accommodative Federal Reserve. Some strategists are warning investors to remain vigilant, however, given the high valuations of equities and the relatively long time since the last pullback in equities. U.S. stocks have gone more than 180 trading days without a 5% correction, in one of the 15 longest periods for the equity market without such a pullback, according to a recent study by Goldman Sachs.

“There was almost a level of perfection in the market heading into summer, and a reopening that was also very strong,” Baird’s investment strategy analyst Ross Mayfield told Yahoo Finance. against the short-term market both technically and fundamentally. And I wouldn’t be surprised to see some volatility and maybe a little correction here in the near term before picking up what should still be a very strong structural bull market. ”

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8:13 a.m.ET: Tencent shares slipped after Chinese state media attacked video game maker

Shares of Hong Kong-listed Chinese tech giant Tencent (0700.HK) fell 6% on Tuesday after Chinese government-linked media attacked the company and called online games “spiritual opium.” .

The Economic Information Daily outlet named one of Tencent’s video games in the article, which was later deleted. Tencent, however, said on Tuesday that it would work to stem the time minors spend on its video games as a result of the article.

The article comes amid a major crackdown in China against the country’s biggest tech companies, with regulatory scrutiny hitting names from Didi Global (DIDI) to Baidu (BIDU). The US deposit receipts from the two companies fell at the start of the session Tuesday morning following the article.

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7:45 a.m. ET Tuesday: Stock futures hold gains overnight as more profits are estimated

Here’s where the markets were trading on Tuesday morning:

• S&P 500 Futures Contracts (ES = F): +14.25 points (+ 0.33%) to 4,394.00

• Dow Futures (YM = F): +156 points (+ 0.45%) at 34,877.00

• Nasdaq Futures (NQ = F): +9.75 points (+ 0.07%) to 14,962.5

• Raw (CL = F): + $ 0.34 (+ 0.48%) to $ 71.60 per barrel

• Gold (CG = F): – $ 9.30 (-0.51%) to $ 1,812.90 per ounce

• 10-year cash flow (^ TNX): +1.8 bps for a yield of 1.19%

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6:10 p.m. ET Monday: Stock futures advance

Here’s where the markets were trading Monday night:

• S&P 500 Futures Contracts (ES = F): +4 points (+ 0.09%) to 4,383.75

• Dow Futures (YM = F): +40 points (+ 0.12%) to 34,761.00

• Nasdaq Futures (NQ = F): +9.75 points (+ 0.07%) to 14,962.5

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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

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