The Nasdaq was up Tuesday as investors looked ahead to big technology earnings for further clues into the health of the U.S. economy.
The tech-heavy index added 1.5%, while the S&P 500 was up 1%.The Dow Jones Industrial Average lagged, adding 200 points, or 0.6%.
Alphabet and Microsoft are among the companies set to report earnings after the bell. Chipotle Mexican Grill is also on deck.
Those reports will come after a smattering of results before the bell.
UPS, 3M and General Motors all posted better-than-expected earnings. Shares of UPS and GM rose in early trading, but 3M dipped 1.6%.
Coca-Cola also reported stronger-than-forecast earnings, sending the stock up 1%.
So far this season, companies have proven they may be faring better than anticipated. That’s due in part to the fact that analysts’ earnings estimates have come down in recent months as companies faced foreign exchange headwinds and other growth concerns. This could set up stocks for rallies on potentially better-than-feared outcomes.
“‘Earnings really have come down quite a bit,” said Sam Stovall, chief investment strategist at CFRA. “Maybe investors are happy because it’s up 2% and not down 2% but we’ve also been seeing reductions in 2023 forecasts. This bear market probably has to play itself out even if we do get a near-term bear market rally.”
Meta Platforms reports Wednesday, followed by Amazon and Apple on Thursday. Given their sheer size and market capitalization, any moves are likely to drive the market going forward.
The S&P CoreLogic Case-Shiller 20-City House Price Index released Tuesday showed home prices fell 1.3% in the 20 core cities studied month-over-month in August, but were still 13.1% higher than a year ago.
Tuesday’s moves come after a back-to-back rally.
The Dow rose 417.06 points, or 1.3%, on Monday. The Nasdaq Composite finished 0.9% higher and the S&P 500 added roughly 1.2%, with nine of 11 sectors finishing higher, led by health care.
“The market has become accustomed to the real price volatility, almost desensitized to it,” said Jeff O’Connor, head of market structure in the Americas for Liquidnet. “And the wild moves are making trading conditions that much more difficult.”