The Nasdaq rose on Tuesday as investors looked to big tech profits for more clues about the health of the US economy.
The tech-heavy index added 1.5%, the S&P 500 rose 0.9%, and the Dow Jones Industrial Average slipped, adding 139 points, or 0.4%.
Alphabet and Microsoft are among the companies set to report their earnings after the bell. Chipotle Mexican Grill is also located on the deck.
These reports will come shortly after the results before the bell.
UPS, 3M and General Motors reported better-than-expected earnings. UPS and GM shares rose in early trading, but 3 million fell 1.6%.
Coca-Cola also reported stronger-than-expected earnings, sending the stock up 1%.
So far this season, companies have proven that they may be doing better than expected. This is partly due to the fact that analyst earnings estimates have fallen in recent months as companies have faced foreign currency headwinds and other concerns about growth. This could lead to a stock rally when results may be better than concerns.
“Earnings have already fallen somewhat,” said Sam Stovall, chief investment analyst at CFRA. “Investors may be happy that it is up 2% and not down 2% but we are also seeing cuts in our 2023 outlook. Perhaps this bear market has to play its part even if we get a market rally in the near term.”
Meta Platforms reports on Wednesday, followed by Amazon and Apple on Thursday. Due to its sheer size and market capitalization, any moves are likely to drive the market forward.
Tuesday’s moves come after a back-to-back rally.
The Dow rose 417.06 points, or 1.3%, on Monday. The Nasdaq Composite finished 0.9% higher, and the S&P 500 added nearly 1.2%, as nine of the 11 sectors ended higher, led by Healthcare.
“The market has gotten used to real price volatility, and has become almost insensitive to it,” said Jeff O’Connor, Head of Market Structure in the Americas for Liquidnet. “And wild movements make trading conditions more difficult.”
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