U.S. stocks showed little movement on Tuesday as traders began to reflect on corporate financial results as earnings season gets underway. Investors are anxiously awaiting the corporate results of EV giant Tesla and Google parent company Alphabet Inc., both of which are set to be released after markets close.
The S&P 500 remained stagnant, hovering around the 5,560 mark, while the tech-heavy Nasdaq 100 slipped by 0.2%. The Dow Jones Industrial Average remained relatively unchanged. Bloomberg Magnificent 7 Total Return Index edged 0.2% higher, while the MSCI World Index remained relatively unchanged.
Data from Bloomberg Intelligence showed that the five biggest U.S. tech companies are expected to show signs of struggling this season, with the cluster’s combined profits projected to rise 29% for the quarter compared to the same period the previous year. Still, U.S. tech companies’ resolve during difficult economic conditions could drive investor optimism.
“We expect the earnings season to bolster confidence in the equity market,” Solita Marcelli from UBS Global Wealth Management observed. “While markets could be choppy in the near term, after a period in which investor positioning had become overextended, we believe fundamentals remain strong.” Barclays Plc expects solid tech profits this year, raising its its year-end target for the S&P 500 from 5,300 points to 5,600 as a result.