Nasdaq Index, Dow Jones, S&P 500 News: Earnings Propel Stock Futures Higher

UPS and PepsiCo: Earnings Before the Cash Opening

Investors welcomed a bullish start to Tuesday’s trading session as U.S. stock futures edged higher, building on the previous session’s robust gains. The bullish sentiment was fueled by a flurry of corporate earnings reports. Notably, tech stocks rebounded from recent losses, with investors buying the dip in key names like Nvidia, which had faced pressure amid inflation concerns and the outlook for interest rates.

At 12:13 GMT, Dow futures are trading 38523.00, up 55.00 or +0.14%. S&P 500 Index futures are at 5057.25, up 9.75 or +0.19% and Nasdaq-100 Index futures are trading 17384.00, up 34.00 or +0.20%.

UPS Delivers, PepsiCo Fizzles

In the spotlight, United Parcel Service (UPS) surged 0.4% in premarket trading following an earnings per share beat for the first quarter. UPS reported earnings of $1.43 per share, surpassing analysts’ expectations of $1.29, although revenue slightly missed estimates at $21.7 billion.

Meanwhile, PepsiCo reported solid quarterly earnings and revenue, outperforming analysts’ expectations despite challenges such as a recall of certain Quaker Foods products. PepsiCo reported adjusted earnings per share of $1.61, exceeding the consensus estimate of $1.52, with revenue hitting $18.25 billion, surpassing expectations of $18.07 billion.

GM Raises Guidance, Bolstered by North American Operations

General Motors (GM) delivered a stellar performance, beating Wall Street’s projections for both revenue and earnings in the first quarter. The automaker raised its 2024 guidance following strong North American operations, now expecting adjusted earnings of $12.5 billion to $14.5 billion, up from the previous range of $12 billion to $14 billion. GM shares soared over 4% post-announcement.

GM’s earnings per share came in at $2.62, exceeding analysts’ expectations of $2.15, with revenue reaching $43.01 billion, surpassing estimates of $41.92 billion. The company’s robust performance in North America, driven by truck sales, offset losses in international markets.

Short-Term Market Outlook: Anticipating Tech Earnings

Looking ahead, the market anticipates a short-term rebound, particularly in the tech sector. Investors are eyeing upcoming earnings reports from major players like Tesla, Meta Platforms, Alphabet, and Microsoft, which could influence market sentiment in the days ahead.

Overall, the upbeat earnings reports from UPS and GM, coupled with the resilience in the tech sector, set a positive tone for the market, suggesting potential upside momentum in the near term.

Technical Analysis

The short-term and intermediate trends are down, following the two-week sell-off. However, the price action since Friday suggests a rebound is taking place.

The short-term range is 40358 to 37463. Its 50% to 61.8% retracement zone at 38910 to 38569 is a potential upside target area. Since the short-term trend is down, sellers are likely to come in on a test of this zone. The 50-day moving average at 39199 is the major upside target and resistance zone.

On the downside, the key level is the 200-day moving average at 37064.