US stocks trade mixed as investors sift through more earnings and await results from mega-cap tech firms

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Trader at the NYSE
Traders work the floor of the New York Stock Exchange during morning trading on May 05, 2022 in New York City. Stocks opened lower this morning after closing high on Wednesday after the Federal Reserve announced an interest-rate hike by half a percentage point in an effort to further lower inflation.

  • US stocks were mixed on Tuesday as investors prepare for third-quarter earnings from mega-cap companies like Apple, Amazon, and Microsoft.
  • Third-quarter results are largely beating analysts’ estimates, according to data from Fundstrat.
  • With 20% of the S&P 500 having reported results so far, 75% have beaten profit estimates by a median of 5%.

US stocks opened mixed on Tuesday following a near-4% rally over the past two days that lifted the S&P 500 to a key resistance level at 3,800.

The moves come as investors digest a slate of third-quarter earnings results, with all eyes turned to mega-cap companies like Apple, Amazon, and Microsoft later this week. Investors are looking for clues as to whether an economic recession is likely in the near future.

According to data from Fundstrat, 20% of S&P 500 companies have reported earnings so far, and 75% of them have beaten profit estimates by a median of 5%. On the revenue side, 69% of those reporting beat analyst estimates by a median of 3%. 

Strong earnings and guidance on Tuesday came from UPS and Coca-Cola, while companies that disappointed investors included Xerox and Corning.

Microsoft and Alphabet are scheduled to report results after the close today.

Here’s where US indexes stood shortly after the 9:30 a.m. ET open on Tuesday:

Here’s what else is happening this morning:

In commodities, bonds and crypto:

  • West Texas Intermediate crude oil rose 0.03% to $84.61 per barrel. Brent crude, oil’s international benchmark, fell 0.31% to $92.97.
  • Gold fell 0.02% to $1,653.60 per ounce.
  • The yield on the 10-year Treasury tumbled 15 basis points to 4.10%.
  • Bitcoin rose 0.21% to $19,384, while ether jumped 1.28% to $1,364. 
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