Nasdaq, S&P, Dow futures climb as buy-the-dip momentum continues

Stock index futures point to further gains at the start of trading Tuesday.

Nasdaq 100 futures (NDX:IND) +1.7%, S&P futures (SPX) +1.6% and Dow futures (INDU) +1.3% are higher.

The economic calendar is light again, but earnings season heats up with plenty to trade on before and after the bell. J&J is higher after topping expectations.

Rates are steady. The 10-year Treasury yield (US10Y) is flat at 4.01% and the 2-year yields (US2Y) is flat at 4.45%.

“There wasn’t any specific catalyst of higher 10yr yields (Monday), other than perhaps US based investors are more focused on the Fed and inflation outlook than on UK financial instability,” Deutsche Bank’s Jim Reid said. “The strength in US equities throughout the day probably also contributed to a stronger growth perception in the US, driving the +4.3bps steepening in 2s10s.”

The dollar (USDOLLAR), which rolled over yesterday, helping stocks, is rebounding a little.

On the economic front, September industrial production numbers arrive just before the opening bell. Economists predict a 0.1% rise for the month.

“The US is not the largest manufacturing nation any more, but it is large enough that its production matters to global supply and demand (with last year’s excess demand starting to give way to excess supply),” UBS chief economist Paul Donovan said.

Looking globally, the Bank of England is considering delaying bond sales, or QT, but the pound lost early strength on the report.

“China delayed publication of economic data, including the third quarter GDP expected today,” Donovan noted. “There is speculation that the government does not want a bad number released during the party congress; such speculation presumes a bad number would be accurately reported. The question of the size of China’s economy is likely to become very politically sensitive, given President Xi’s objectives for GDP per person.”

Among other active stocks, Netflix is still climbing after a pre-earnings surge on Monday as it launched Profile Transfer. Focus will be on the ad-supported tier when the company reports after the bell. (Would you watch Netflix with ads? Vote in our “Weekend Bite” poll.)