Investing.com — U.S. stock index futures edged higher on Tuesday amid some caution over expected earnings from some of the country's biggest technology companies later this week.
As of 6:25 ET (10:25 GMT), it was up 68 points (0.2%), up 11 points (0.2%) and up 48 points (0.3%).
Wall Street's main indexes rebounded on Monday from two weeks of steep losses, led mainly by the tech sector, as sharp valuation falls sparked bargain hunting.
The average rose by 0.9%, and the increase was 1.1%, and both averages ended their six-day losing streak. It rose by more than 250 points (0.7%).
Artificial intelligence darling Nvidia (NASDAQ:) soared 4.4% from its two-month low during the session. Meta, Microsoft, and Alphabet also posted modest gains, outpacing profits.
It also helped that there was no immediate escalation of tensions between Israel and Iran after a series of attacks over the past two weeks, and easing concerns about broader conflict in the Middle East also helped Wall Street.
Tesla begins technology earnings parade
Electric car maker Tesla (NASDAQ:) will report its quarterly results after the bell. The EV maker is facing what analysts describe as a “nightmare quarter” with its first quarterly shipment decline in four years.
Tesla shares fell more than 3% on Monday to a 15-month low after the company cut car prices in several major regions. This risks a new price war, further squeezing profit margins.
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Four of the Magnificent Seven stocks, including Tesla, are scheduled to announce their earnings this week. Facebook owner Meta Platforms (NASDAQ:) will report earnings on Wednesday, followed by Microsoft Corporation (NASDAQ:) and Google owner Alphabet (NASDAQ:) on Thursday.
The market is paying attention to whether Japan's largest companies can justify the steep drop in stock prices through the first quarter.
Beyond tech, Visa (NYSE:), PepsiCo (NASDAQ:), General Motors (NYSE:), Danaher (NYSE:) and more are scheduled to report results on Tuesday.
Novartis (NYSE:) stock rose more than 4% premarket after the Swiss drugmaker raised its full-year earnings outlook after reporting better-than-expected first-quarter results early Tuesday .
“Only 70, or 14%, of the companies included in the S&P 500 report, making it difficult to make a definitive statement about the season so far,” Oppenheimer analysts wrote in a note. It's still too early to tell.” Sales increased by 4.5%, an increase of 9.4% from the previous year. And 80% of companies that have reported so far have exceeded expectations. ”
We are looking forward to the PCE inflation rate and first quarter GDP this week.
Tuesday's economic calendar includes S&P Global's PMI data for March and April.
But the main focus on Friday will be data on the Fed's preferred inflation measure, which is expected to provide further clues about interest rates.
But first, data is expected to show how robust U.S. economic growth was in the first quarter of 2024.
Crude oil awaits next move from the Middle East
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Oil prices were little changed on Tuesday, stabilizing after a recent decline as the volatile situation in the volatile Middle East remains in the spotlight.
By 6:25 a.m. ET, U.S. crude oil futures were trading 0.1% lower at $81.84 a barrel, while Brent crude oil futures were trading flat at $87.00 a barrel.
Oil prices fell to a three-week low on Monday amid growing confidence that Iran and Israel will not go into full-scale war despite their recent missile attacks. Concerns about such a scenario have been a major driver of recent oil price increases.
(Amber Warwick contributed to this article.)
