More gains ahead for U.S. stocks
Wall Street looks set to open with gains on Tuesday after all three major averages rose to new highs during the previous session.
As of 6:25 a.m. ET, futures tied to the blue-chip Dow Jones Industrial Average were up 109 points, or 0.31% to 35,729.
S&P 500 futures jumped 17.25 points, or 0.38% to 4,575.25 while the tech-heavy Nasdaq 100 futures climbed 87.50 points, or 0.56% to 15,583.25.
On Monday, the Dow closed rallied 64 points to close at a record 35,741.15 as earnings season helped to counter concerns that tightening monetary policy and surging consumer prices will slow the recovery from the Covid-19 pandemic.
The S&P 500 gained about 0.5% to finish the session at a record 4,566.48, while the Nasdaq Composite Index added 0.9% to end at 15,226.71.
Facebook beats on earnings, revenue falls short
Facebook (NASDAQ: FB) reported better-than-expected earnings for its fiscal third quarter on Wednesday evening, but revenue came in lower than anticipated.
The social media giant earned $9.19 billion, or $3.22 per share, while revenue grew 35% year-over-year to $29.01 billion. Analysts expected had called for earnings of $3.19 per share and revenue of $29.58 billion.
Facebook also provided a downbeat revenue forecast for the fourth quarter and unveiled plans to break out its Facebook Reality Labs, its metaverse unit tasked with creating augmented and virtual reality hardware, software, and content.
The company’s board of directors also approved a $50 billion share-buyback program.
Microsoft, Alphabet, Robinhood earnings eyed
Today’s earnings schedule sees Microsoft (NASDAQ: MSFT), Google-parent Alphabet (NASDAQ: GOOG), and Robinhood (NASDAQ: HOOD) release their financial results after the closing bell.
Microsoft is projected to report fiscal first-quarter earnings of $2.07 per share on revenue of $43.97 billion. Shares of the company were up less than a percent to $310.15 in the pre-market trading session.
Alphabet is expected to have earned $23.48 per share on revenue of $63.32 billion in its fiscal third quarter. Shares of Alphabet rose $41.96, or 1.51% to $2,817.42 a share before the opening bell.
Analysts expect Robinhood to report a quarterly loss of $1.36 per share on revenue of $431.27 million.
Other key earnings to watch today include Novartis (NYSE: NVS), Eli Lilly (NYSE: LLY), General Electric (NYSE: GE), Visa (NYSE: V), and Universal Health Services (NYSE: UHS).
Tesla joins $1 trillion club
Meanwhile, Tesla (NASDAQ: TSLA) officially became the sixth company in US history to join the $1 trillion club Monday.
Tesla stock shot up more than 12% to close yesterday’s session at about $1,025 per share, buoyed by news that rental car company Hertz has ordered 100,000 Teslas for its fleet.
As per reports, the deal is worth about $4.2 billion and will push Hertz’s electric-vehicle offerings to 20% of its global fleet.
The gains also came after influential Morgan Stanley analyst Adam Jonas upped his price target for Tesla from $900 to $1,200.
In crossing the threshold, Tesla joins Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN) Alphabet, Microsoft, and Facebook, all of which have hit the key milestone.