Futures tick lower on mixed earnings reports

U.S. stock index futures edged lower on Tuesday as investors assessed a mixed batch of earnings reports, including from Google parent Alphabet and big drugmakers Merck and Pfizer.

The benchmark S&P 500 closed at a record high, while the Nasdaq ended the session less than 5 points below its closing high in July on hopes of a U.S.-China trade deal and a widely expected interest rate cut. Merck & Co Inc (MRK.N) rose 1.9% in premarket trading after it beat quarterly profit estimates, while Pfizer Inc (PFE.N) gained 2.9% as it raised its 2019 earnings forecast.

Shares of Alphabet Inc (GOOGL.O), however, dropped 1.5% as the web search leader's quarterly profit missed estimates due to higher costs.

Other marquee names reporting this week include tech heavyweights Apple Inc (AAPL.O) and Facebook Inc (FB.O) as well as oil majors Exxon Mobil Corp ( XOM.N) and Chevron Corp (CVX.N).

Third-quarter earnings of S&P 500 companies have largely been better than expected, with over 78% of the 204 companies that have reported so far surpassing profit expectations, according to Refinitiv data.

Investors will keep a close watch on the two-day Federal Reserve meeting, where the central bank is expected to cut interest rates by a quarter percentage point for the third time this year. The Fed will announce its policy decision on Wednesday.

At 7:14 a.m. ET, Dow eminis 1YMcv1 were down 56 points, or 0.21%. S&P 500 eminis EScv1 were down 3.75 points, or 0.12% and Nasdaq 100 e-minis NQcv1 were down 5.25 points, or 0.06%.

Beyond Meat Inc (BYND.O) dropped 15.5% as the vegan burger maker said it would need to offer more store discounts amid rising competition, overshadowing its first ever quarterly net profit and full-year sales forecast raise.

Shares of GrubHub Inc (GRUB.N) plunged 35% after the online food delivery company warned of slowing growth as customers opted to choose from a growing pool of rival providers to get better deals.

On the economic front, data at 10:00 a.m. ET is expected to show reading on U.S. consumer confidence index rose to 128 in October from 125.1 in September.

Meanwhile, the euro was range-bound against the dollar Tuesday as investors awaited for the outcome of the Federal Reserve meeting on

Wednesday, while risk-oriented currencies strengthened as hopes for an easing in SinoU.S. trade tensions buoyed sentiment.

Underpinning risk appetite in markets, there is heightened general optimism that Britain won't crash out of the European Union without a deal and the U.S. Federal Reserve will likely cut interest rates this week for a third time this year.

The U.S. dollar was "just bouncing around in ranges" ahead of Wednesday's Fed announcement, said Adam Cole, chief currency strategist at RBC Capital Markets.

Cole thinks further rate cuts, beyond the one expected on Wednesday, are overpriced.

"Unless the Fed guidance is explicitly that they're close to sanctioning another cut then we think that the market expectation is diminished, then dollar goes up," he said.

The euro was last down 0.1% at $1.1085, close to falling to a 12-day low. Cole expects the euro to be limited to the $1.1050-$1.1100 range.

Against a basket of currencies,, the dollar was up 0.1% at 97.84, having risen to a 12-day high of 97.93 earlier.

The Australian dollar climbed for a third consecutive session against the Swiss franc, reaching a six-week high of 0.6824 AUDCHF=. The currency pair, widely considered to be a barometer of risk sentiment in the currency markets, has risen by 2.4% so far this month, its biggest monthly rise since April.

Broader moves were modest, though, as caution tempered the mood. The New Zealand and the Canadian dollars edged slightly higher before erasing some of these gains.

U.S. President Donald Trump said a trade agreement with China looked to be ahead of schedule, without detailing the timing. Washington also said it was studying whether to extend tariff suspensions due to expire in December.

"Global risks remain but have shown signs of subsiding," Philip Wee, FX strategist at Singapore's DBS Bank said in a note.

The British pound, meanwhile, was flat on the day around $1.2860 after initial losses were erased when Labour leader Jeremy Corbyn said he would support an election. The U.K. parliament is due to debate a new election bill on Tuesday. Prime Minister Boris Johnson is widely expected to win the simple majority needed.

Earlier, Johnson failed to win the 2/3 majority necessary to call an election. The vote took place after the European Union agreed to a three-month flexible Brexit delay.