Stock futures remain unchanged after the S&P 500 and Nasdaq close at record highs
Stock futures remained stable in early morning trading on Tuesday as investors braced for another series of corporate profits.
The futures on the Dow Jones Industrial Average gained 33 points. S&P 500 futures and Nasdaq 100 futures both traded in slightly positive territory.
Tesla’s shares fell 2.5% in expanded trading even after the electric automaker posted a record $ 438 million profit. Tesla also significantly exceeded profit and revenue expectations, fueled by bitcoin sales and regulatory credit.
The profit season of the first quarter starts on Tuesday in full swing. Major companies like Alphabet, Microsoft, Starbucks and AMD are reporting after the bell.
So far, 84% of companies have had a positive earnings surprise, according to FactSet, as around a third of the S&P 500 have reported numbers. However, share movements were relatively subdued after the strong results as the market was at record levels with high valuations.
GameStop’s stock rose more than 9% in after-hours trading after the video game retailer sold 3.5 million additional shares and raised $ 551 million to accelerate the company’s e-commerce transformation.
The S&P 500 climbed higher, closing on another record Monday, while the tech-heavy Nasdaq Composite rose 0.9% to hit its first new record high since February 12.
“Strong action suggests stocks may have even more upside,” said Jeff Buchbinder, equity strategist at LPL Financial. “Although valuations are elevated, they still seem reasonable given interest rates and inflation.”
The Federal Reserve starts its two-day session on Tuesday. The central bank is not expected to take action, but economists expect it to defend its policies to keep inflation running hot.
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