After six days of losses, stocks are rebounding as investors prepare for a heavy earnings season. The S&P 500 and Nasdaq Composite rose on Tuesday, with chip stocks and Tesla leading the way. Despite Tesla reporting a drop in first quarter revenues and profits, the stock rallied in premarket trading as the numbers were not as bad as expected. Boeing also reported better than expected numbers, with their 737 Max supply chain stabilizing. Texas Instruments’ positive earnings are boosting optimism for chip stocks, which could benefit companies like Nvidia and Intel.
In addition to earnings reports, there was some economic news with Durable Goods orders for March coming in slightly above expectations. The market reaction to the news was muted as the focus remains on earnings results. Investors will be watching to see if the positive reactions in Tesla, Boeing, and Texas Instruments continue and if it will have a broader impact on the market. With fundamental valuations being stretched heading into earnings season and the possibility of rate cuts being pushed back, optimism from earnings results will be crucial for market momentum.
Bitcoin prices have also made a comeback along with equities, trading above $66 thousand but down slightly in premarket trading. Looking ahead, Ford, IBM, and Meta Platforms are set to report after the market close. Meta Platforms, in particular, is expected to dominate market attention with an expected move of $42 by Friday. American Airlines and Caterpillar are among the big names reporting before the market open on Thursday. Investors are encouraged to stick with their investing plans and long-term objectives amidst the flurry of earnings reports and market volatility.
The information provided by tastytrade, Inc. is for educational purposes only and not intended as trading or investment advice. The content does not recommend any specific investment products or strategies and is meant to provide insight into the current market conditions. As the market reacts to earnings reports and economic news, investors should remain diligent in monitoring their investments and staying focused on their long-term goals. With uncertainty surrounding rate cuts and stretched valuations, optimism from earnings results will be key in sustaining market momentum.
