Stock futures were unchanged on Tuesday as investors braced themselves for a large amount of technical gains.
Futures on the Dow Jones Industrial Average lost 30 points. The S&P 500 futures were flat. The Nasdaq 100 futures were also flat.
Tesla’s shares fell 3% in premarket trading even after the electric automaker posted a record $ 438 million profit. Tesla also significantly exceeded Wall Street’s earnings and earnings expectations, fueled by bitcoin sales and regulatory credit. Stocks have struggled this year, more than 18% from their record. Though the stock is still up 360% over the past 12 months.
The winning season for the first quarter starts in full swing on Tuesday. Major tech companies like Alphabet, Microsoft, 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 more than 8% in premarket 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.
Apple and Facebook wins will follow after the bell on Wednesday.
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