Trader on the New York Stock Exchange.
Stock futures remained stable in overnight trading on Monday as investors prepared for another batch of corporate earnings.
The futures on the Dow Jones Industrial Average and the S&P 500 futures have barely changed. The Nasdaq 100 futures were up 0.1%.
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 12% in after-hours trading after the video game retailer said it sold 3.5 million additional shares and raised $ 551 million to accelerate the company’s e-commerce transformation.
The S&P 500 rose to another record high on 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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