S&P 500 futures remained stable on Tuesday night as investors analyzed the quarterly results of tech giants Microsoft and Alphabet. Futures linked to the S&P 500 experienced a slight decline of 0.06%, while Nasdaq 100 futures fell by 0.2%. Conversely, Dow Jones Industrial Average futures increased by 0.2%, or 74 points.
Following the closing bell on Tuesday, Microsoft’s shares surged by 3.7% due to better-than-expected results in the fiscal first quarter. Investors displayed particular optimism regarding the company’s revenue growth, specifically from its Azure cloud segment. Conversely, Alphabet’s shares plummeted by over 6% as its cloud business failed to meet analysts’ estimates, overshadowing its revenue growth and earnings beat.
The main trading session witnessed all major averages recording gains, primarily driven by robust corporate earnings reports. The Dow added more than 200 points, breaking a four-day losing streak and registering a rise of 0.6%. Meanwhile, the S&P 500 and Nasdaq Composite increased by 0.7% and 0.9%, respectively.
Adam Parker, the founder and CEO of Trivariate Research, expressed his perspective on the current earning season during CNBC’s “Closing Bell.” He mentioned the mixed to positive results and the potential for returning to a “Goldilocks period,” where it is hoped that interest rates will cease to rise and accommodation and growth will prevail. Parker predicts a positive end to the year based on these factors.
Traders will closely monitor significant quarterly reports throughout this busy earnings season. Boeing is set to release its quarterly results on Wednesday, followed by IBM and Meta in the afternoon. In terms of economic data, the housing market will be in focus, with attention directed towards September’s building permits and new home sales numbers.
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