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James Hyerczyk
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US Stock Indexes

The major U.S. stock indexes are trading slightly higher in overnight trading as investors positioned themselves ahead of another collection of corporate earnings reports on Tuesday. Futures on the E-mini S&P 500 Index, the E-mini Dow Jones Industrial Average and the E-mini NASDAQ-100 Index were all up about 0.08 to 0.10%.

Overnight Activity

There was some notable activity in the overnight trade but the news failed to move the needle much in the pre-market futures contracts.

Shares of Tesla fell 2.5% in extended trading even after the electric carmaker posted record net income of $438 million. Tesla also beat earnings and revenue expectations handily, boosted by sales of bitcoin and regulatory credits.

GameStop’s stock jumped 12% in after-hours trading after the video game retailer said it sold 3.5 million additional shares, raising $551 million to speed up the company’s e-commerce transformation.

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Monday Recap

The S&P 500 and NASDAQ Composite closed higher on Monday, fueled by Tesla ahead of the electric car maker’s quarterly report, which kicks off this week’s results from several heavyweight growth companies. The Dow Jones Industrial Average finished lower for the session.

Seven of the 11 major S&P 500 sectors were trading higher, with the materials index gaining 0.7%, while utilities and consumer staples led declines.

Advancing issues outnumbered declining ones on the NYSE by a 1.93-to-1 ratio; on NASDAQ, a 2.34-to-1 ratio favored advances.

The S&P 500 posted 105 new 52-week highs and no new lows; the NASDAQ Composite recorded 146 new highs and 18 new lows, according to Reuters.

In economic news, new orders for key U.S.-made capital goods rose solidly in March and shipments surged, cementing expectations that economic growth accelerated in the first quarter as massive government aid and improving public health boosted demand.

Tuesday Outlook

The first-quarter earnings season kicks into high gear on Tuesday with key companies such as Alphabet, Microsoft, Starbucks and AMD reporting after the bell. Companies that constitute about 40% of the S&P 500’s market cap report from Tuesday through Thursday. Other companies include Apple and Facebook.

Investors will also monitor a two-day Federal Reserve meeting beginning Tuesday, with the U.S. central bank expected to shine some light on whether the employment landscape has affected its plan to leave interest rates near zero for an extended time and to continue buying $120 billion in bonds each month.

Also on investors’ radar is a reading of first-quarter gross domestic product later this week to gauge the pace of economic recovery in the Unites States.

Market participants are also watching out for any fresh developments on U.S. President Joe Biden’s tax plan after reports last week said he would seek to nearly double the capital gains tax to 39.6% for wealthy individuals.

For a look at all of today’s economic events, check out our economic calendar.

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