Stock futures held steady in overnight trading on Monday as investors braced for another batch of corporate earnings.
Futures on the Dow Jones Industrial Average and S&P 500 futures were little changed. Nasdaq 100 futures inched up 0.1%.
Shares of Tesla fell 2.5% in extended trading even after the electric carmaker posted record net income of $438 million. Tesla also beat earnings and revenue expectations handily, boosted by sales of bitcoin and regulatory credits.
The first-quarter earnings season kicks into high gear on Tuesday with key companies such as Alphabet, Microsoft, Starbucks and AMD reporting after the bell.
So far, with about a third of the S&P 500 having reported numbers, 84% of companies have turned in a positive earnings surprise, according to FactSet. However, stock moves have been relatively muted following the strong results with the market standing at record levels with high valuations.
The S&P 500 edged higher to close at another record on Monday, while the tech-heavy Nasdaq Composite climbed 0.9% to hit its first fresh record close since Feb. 12.
“Strong breadth measures suggest stocks still may have more upside,” said Jeff Buchbinder, equity strategist at LPL Financial. “While valuations are elevated, they still appear reasonable when factoring in interest rates and inflation.”
The Federal Reserve kicks off its two-day policy meeting on Tuesday. The central bank is not expected to take any action, but economists expect it to defend its policy to let inflation run hot.
SOURCE : https://www.cnbc.com/2021/04/26/stock-market-futures-open-to-close-news.html