April 27 Reuters The SP 500 and the Nasdaq were set to open slightly higher on Tuesday as investors geared up for earnings reports from Microsoft and Alphabet, while awaiting cues from the Federal Reserve on its monetary policy stance.
Shares of Microsoft Corp and Alphabet Inc gained 0.4 each, while those of Apple Inc, Facebook Inc and Amazon.com Inc, slated to report this week, were also higher. The five companies combined account for about 40 of the SP 500s market capitalization.
What were really looking forward to is guidance about where were going in the next six months to a year and that is going to set the tone for the markets, said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh.
Overall earnings for SP 500 companies are expected to jump 34.3 in the first quarter from a year earlier, according to Refinitiv IBES data.
Electriccar maker Tesla Inc dropped about 3 in premarket trading after it marginally beat analysts expectations for quarterly revenue, helped by a jump in environmental credit sales to other automakers and liquidating some bitcoins.
Tesla is a special case. A lot of the gains for the company were driven by its bitcoin bet, which is a sideline. Its good that it sold a lot of cars, but it didnt make a lot of money from the cars, Forrest said.
The SP 500 and the Nasdaq ended at record levels on Monday, with the techheavy Nasdaq completing a full recovery from its 11 correction that began in February.