Stock futures point higher ahead of tech earnings flood

Stock-index futures pointed higher Tuesday, with the S&P 500 and Nasdaq Composite on track to build on records, as investors sift through a torrent of corporate earnings and prepare for results from tech heavyweights.

What are major benchmarks doing?
  • Futures on the Dow Jones Industrial Average

    rose 27 points, or 0.1%, to 33,904.

  • S&P 500 futures

    were up 5.10 points, or 0.1%, at 4,184.50.

  • Nasdaq-100 futures

    gained 20 points, or 0.1%, to trade at 14,031.50.

On Monday, stocks ended mostly higher, with tech-related shares leading the move to the upside the S&P 500

rose 0.2% and eclipsed its previous closing high from April 16 and the Nasdaq Composite

jumped 0.9% to take it out its record finish from Feb. 12. The Dow

stumbled, falling 0.2%.

What’s driving the market?

Corporate results were in the spotlight as one of the busiest weeks of earnings season got under way, with electric car maker Tesla Inc.

delivering its report late Monday afternoon. Tech results will be in the spotlight, with earnings for Microsoft Corp.

and Google parent Alphabet Inc.


due after the closing bell Tuesday.

“The biggest threat to the positive trend in technology stocks is the reflation trade, which would boost demand for cyclical stocks and move capital from the tech stocks towards the value names,” said Ipek Ozkardeskaya, senior analyst at Swissquote.

“But it looks like that migration from growth to value is happening without too much harm for the tech stocks for now, and some digital services, including the cloud business will unlikely be affected by the reflation theme as the end of the pandemic won’t reverse the migration of our data storage to the clouds,” she said, in a note.

The Federal Reserve on Tuesday will kick off a two-day policy meeting that’s expected to see policy makers stand pat. Fed Chairman Jerome Powell is expected to maintain his stance that interest rates won’t begin to rise until inflation exceeds the Fed’s 2% target.

Read: Why the Fed’s focus on those hardest-hit by the pandemic matters for markets

The economic calendar features the Case-Shiller home price index for February at 9 a.m. Eastern.

A consumer-confidence index reading for April is due at 10 a.m.

Which companies are in focus?
  • Tesla shares were down more than 2% in premarket action after the Silicon Valley electric-car maker reported first-quarter profit above expectations, but saw sales miss the mark slightly.

  • Shares of Lyft Inc.

    were up 1.8% after the ride-hailing company late Monday said it would sell its autonomous-vehicle division to a Toyota 

    subsidiary for $550 million in cash, calling the move a way to speed up the development of self-driving technology.

  • Shares of meme favorite GameStop Corp.

    rose more than 7% in premarket action after the videogame retailer announced after the closing bell that it had completed its “at-the-market” stock offering by selling 3.5 million additional shares for approximately $551 million.

  • Shares of drugmaker Eli Lilly & Co.

    were down more than 5% after it posted weaker-than-expected first-quarter earnings and provided guidance that was below consensus.

  • United Parcel Service Inc.

    shares rose after the package delivery giant reported first-quarter profit and revenue that were well above expectations.

  • Shares of 3M Co.

    rose 1.5% after the conglomerate reported first-quarter earnings and revenue that beat forecasts and affirmed its full-year outlook.

  • General Electric Co.

    shares rose after the industrial conglomerate swung to a first-quarter loss, but reported adjusted profit that topped expectations while revenue fell short of expectations.

  • Hasbro Inc.

    shares rose 2% after the toy maker reported earnings that topped forecasts, while revenues fell short.

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