S&P500: GM and Coca-Cola Beat Forecasts as Traders Await Netflix Earnings Today

Futures Hold Steady as Strong Corporate Earnings Lift Sentiment

U.S. stock futures hovered near the flatline early Tuesday, holding onto Monday’s gains as investors assessed stronger-than-expected earnings from several large-cap companies and watched for further catalysts in a packed week for earnings and policy developments.

At 12:17 GMT, Dow Jones Industrial Average futures edged up by 16 points, while S&P 500 futures rose 0.01% and Nasdaq-100 futures weakened by 0.02%. The market appeared to pause following Monday’s rally, which was fueled by optimism over the potential end to the U.S. government shutdown and strength in Apple shares.

Which companies are driving early market optimism?

General Motors surged 8% in premarket trading after it raised full-year guidance and beat quarterly earnings expectations. The automaker reported adjusted earnings of $2.80 per share on $48.59 billion in revenue, well above Wall Street estimates. GM also reduced its projected losses from recently implemented U.S. tariffs, saying it expects to recoup about 35% of the impact.

Coca-Cola and 3M also delivered upside surprises, each climbing about 2% in early trade. Coca-Cola topped analyst forecasts with earnings of 82 cents per share on $12.41 billion in revenue. Regional lender Zions Bancorp rose nearly 1% despite revealing troubled loan exposures last week, as its Q3 profit rose year over year.

How are traders interpreting broader earnings trends?

More than 75% of S&P 500 companies reporting so far have exceeded earnings estimates, according to FactSet, adding momentum to the recent rally. Big Tech, led by the “Magnificent Seven,” is expected to be the primary growth engine this season.

These firms are forecast to post 14.9% earnings growth versus 6.7% for the rest of the index. Traders are closely eyeing Netflix results due Tuesday and Tesla on Wednesday for signs of sustained strength in the AI-driven tech trade.

Ameriprise Financial’s Anthony Saglimbene noted that if these mega-cap names outperform, it could provide another leg higher for equities into year-end. However, elevated valuations may temper gains unless guidance also improves.

What broader risks are traders watching this week?

Investors remain focused on U.S.-China trade developments after President Trump threatened new 100% tariffs but later expressed confidence in reaching a deal following his upcoming meeting with Chinese President Xi Jinping.

The possibility of a Federal Reserve rate cut at month’s end also looms large. Friday’s consumer price index release will be key in shaping expectations for the Fed’s next move.

Market outlook: Can earnings momentum sustain a bullish trend?

While earnings season has started strong, Tuesday’s muted futures movement may reflect investor caution ahead of Netflix’s highly anticipated results due after the bell. As one of the “Magnificent Seven,” Netflix’s performance could influence sentiment across the tech sector, particularly given the group’s outsize impact on recent market gains.

A solid report from Netflix could reinforce bullish momentum, but any disappointment might trigger broader hesitation given the elevated expectations priced into Big Tech. With inflation data and the Fed’s rate decision still ahead, traders may remain selective until more clarity emerges. For now, the outlook leans cautiously bullish, contingent on strong showings from tech leaders this week.

More Information in our Economic Calendar.