The Dow Jones DJIA—0.69% futures are up 179 points, or 0.6%, and the S&P 500 SPX—0.84% futures are up 0.7%. Nasdaq Composite futures have gained 0.8%.
The stock market had a rollercoaster day on Monday, with early gains turning into losses. Some corporations may be bracing for lower-than-anticipated earnings because of the Federal Reserve’s interest rate increases, which are designed to reduce demand to control excessive inflation. The stock market is now attempting to recoup some of the lost territories.
So far, the earnings season for the second quarter has been quite robust. According to Wells Fargo, almost 11 percent of the S&P 500’s market value has reported profits, and 64 percent of businesses have exceeded expectations. Even firms that missed forecasts saw their stocks outperform the S&P 500 by 0.8 percentage points. The fact that the S&P 500 was still down roughly 20% from its all-time high entering Tuesday’s trading was one factor that enabled equities to perform well leading up to results.
After the closing, investors are eagerly awaiting results from Netflix (NFLX) and J.B. Hunt Transport Services (JBH) (JBHT). If the outcomes continue to be good enough, the market might break through important points in the future Dow Jones Today.
Recently, that level, around 3900 to 3900, has been pivotal. Since mid-June, when it hit an intraday low of $2022, the S&P 500 has recovered. However, it hasn’t yet been able to go above that point. Breaking 3900 would be a positive indication of the rally’s long-term prospects.
The most significant danger is a decline in profit expectations. The 2022 earnings per share projection for the S&P 500 has increased this year as economic uncertainties have been revealed.
Earnings may be both a blessing and a curse.
The following are two stocks to watch for movement on Tuesday:
Stocks in the technology sector rebounded somewhat on Tuesday after Monday’s sector-wide falls following Apple’s 2.06 percent hiring increase. Shares of Apple climbed 0.5%.
Premarket trading for International Business Machines (IBM) was down 5% as the company’s cautious forecast overshadowed the group’s better-than-expected profits late Monday.