US Futures Flat as Fed Meeting Starts and Earnings Roll In

US stock index futures were little changed early on Tuesday, as investors waited for a run of company earnings and for the Federal Reserve decision on Wednesday. Oil held near its highest level in six weeks, which kept inflation at the front of the market's mind.

At 5:17 a.m. Eastern Time, Dow E-minis were up 70 points, or 0.14 percent. S and P 500 E-minis were up 3.75 points, or 0.05 percent, and Nasdaq 100 E-minis were up 2 points, or 0.01 percent, Reuters reported. TipRanks put futures a touch higher a few minutes later, with the Dow up 0.14 percent, the S and P 500 up 0.07 percent and the Nasdaq 100 up 0.07 percent at 5:37 a.m. Eastern Time.

The flat start followed a strong Monday. The S and P 500 rose 0.7 percent, the Nasdaq Composite rose 0.8 percent and the Dow Jones Industrial Average rose 0.3 percent, as AI shares recovered after Anthropic filed for its initial public offering.

The Fed meeting starts today

The Federal Open Market Committee opens its two day meeting on Tuesday and announces its decision on Wednesday, October 28. The Fed is widely expected to hold rates steady, after an increase last month. Markets are still pricing at least two more hikes by mid 2027, Reuters reported, because key inflation measures remain high during the US and Iran conflict.

John Velis, head of Americas strategy at BNY, told Reuters his team would not oppose a hike, while not expecting a move this week. He said maintaining credibility matters for the Fed, and noted that the inflation target has been exceeded for more than 60 straight months, a point Fed Chair Kevin Warsh repeats often.

Oil stays high

Crude prices were slightly higher on Tuesday after falling in the previous session, with Brent near its highest since late April. High oil prices feed the inflation case. They also raise costs for airlines, shippers and households at the start of the winter heating season.

Whirlpool falls hard

Whirlpool was the sharp premarket loser. Its shares dropped 8.8 percent before the open, Reuters reported, after the appliance maker reported a third quarter loss and missed revenue estimates on Monday.

Barron's reported that Whirlpool posted an adjusted loss of 21 cents a share on revenue of 3.68 billion dollars, with sales down 8.8 percent from a year earlier. Wall Street had expected adjusted earnings of 73 cents a share on sales of 3.93 billion dollars. The stock closed down 5.9 percent on Monday at 26.44 dollars, its lowest close since March 20, 2009, and is down 63.3 percent this year, on pace for its worst year on record. Chief Executive Marc Bitzer said the pace of recovery is slower than expected, while the company raises prices and cuts structural costs.

Tesla rose close to 1 percent in premarket trading after jumping more than 5 percent on Monday. Meta Platforms was flat after the company increased its largest ever equity fundraising to 97.5 billion dollars to fund AI expansion.

Earnings set the tone

Coca-Cola, Boeing and PayPal were among the major companies due to report before the open on Tuesday. Alphabet, Microsoft and Amazon report later this week. Their results will be read for signs that heavy AI investment is turning into growth, Reuters reported.

Why it matters and what happens next

Tuesday is a holding day with real information in it. Consumer and industrial earnings before and after the open give the Fed meeting a live read on demand, on the same morning that South Korea reported chip led growth and Europe opened lower. If earnings hold up and the Fed holds rates on Wednesday without a harsher tone, Monday's rebound can extend. If oil stays high and the Fed sounds ready to hike again in December, the flat futures start will look like the calm part of the week.