Medora Lee, USA TODAY
2 min read
U.S. stock futures point to a lower open, a day amid mixed earnings reports, a potential strike in the Middle East and rising long-term bond rates.
Homebuilder Toll Brothers and Keysight Technologies each topped analysts' forecasts in their second fiscal quarters. Palo Alto Networks beat Wall Street forecasts in its third fiscal quarter but gross margins missed.
Before the bell, big-box retailer Target cut its full-year sales outlook, citing consumer uncertainty around consumer spending due to tariffs and backlash to a rollback of DEI efforts. Sales in the first three months of the year also fell short of analysts' expectations.
Home improvement retail chain Lowe's reprted earnings in the first three months of the year that topped Wall Street forecasts.
At 7:57 a.m. ET, futures linked to the blue-chip Dow fell 0.76% while broad S&P 500 futures eased 0.51% and tech-heavy Nasdaq futures slumped 0.53%.
Oil prices rose on a CNN report that new U.S. intelligence suggests Israel is preparing for a potential strike on Iranian nuclear facilities. It was unclear if Israeli leaders have made a final decision on whether to carry out the strikes, CNN said, citing unnamed officials.
The 30-year U.S. bond yield pressed higher, moving above the key 5% level again as global bonds sold off. Bond prices move in the opposite direction of yields. The 30-year yield was last up at 5.033%. It hasn't settled above 5% since October 2023.
The Texas House of Representatives approved a state bitcoin reserve bill, sending the crypto-related legislation to the governor’s desk for a likely signature. The bill allows Texas to stockpile bitcoin and potentially other cryptocurrencies. The state comptroller would control of reserve and any potential buying and selling of the digital assets.
Bitcoin was last down 0.02% at $106,583.60.
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
This article originally appeared on USA TODAY: US stock futures drop as 30-yr bond yield tops 5%, Target cuts outlook
