Nasdaq - Wall Street heads for muted open amid earnings

"There is a positive view (on technology earnings)," said Giuseppe Sette, president of AI investment platform Toggle. "In a way, their ability to play through an inflationary cycle is strong, especially because tech has always had a very flexible ability to adjust prices."

Leading premarket gains among Dow components, Coca-Cola Co KO.N rose 2.4% after the company raised its annual revenue and profit forecasts, banking on steady demand amid price increases.

Leading premarket gains among Dow components, Coca-Cola Co KO.N rose 2.4% after the company raised its annual revenue and profit forecasts, banking on steady demand amid price increases.

Meanwhile, General Electric Co GE.N reversed earlier losses to gain 1.6% after the industrial conglomerate topped quarterly revenue expectations, while General Motors GM.N added 2.8% after reaffirming its full-year outlook.

Raytheon Technologies Corp RTX.N dipped 0.1% after the aerospace supplier trimmed its 2022 sales outlook, while United Parcel Service Inc UPS.N added 3.0% on posting a stronger-than-expected quarterly adjusted profit.

While earnings reports are expected to influence trading decisions this week, U.S. stock markets rose in the past two sessions after signs of economic softness suggested the effects of the Fed's policy aimed at curbing decades-high inflation were taking root.

Markets are still pricing in a fourth-straight 75 basis point rate hike from the Fed on Nov. 2, but a report from S&P Global that showed a contraction in business activity this month tempered bets of another jumbo-sized raise in December. FEDWATCH

Toggle's Sette noted that it is not yet a done deal that investors are shifting towards a more dovish Fed. However, "it's quite possible that we see a classic Fed error."

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