V - US Stocks Poised For Mixed Start Ahead Of Meta Earnings: Analyst Sees Corporate Profits Providing 'Fundamental Ballast' To Market | Benzinga
Mixed earnings have dampened the market’s risk appetite, as indicated by U.S. stock futures, which suggest a mixed opening on Wednesday. The reaction to earnings news has been varied, with Microsoft Corp.’s (NASDAQ:MSFT) report receiving a positive reception from the Street, while Alphabet, Inc.’s (NASDAQ:GOOGL) (NASDAQ:GOOG) underwhelming Cloud revenue growth has not been well-received by investors.
The spotlight now turns to the third member of the “Magnificent Seven,” namely Meta Platforms, Inc. (NASDAQ:META), scheduled to report after the close. With numerous headwinds in play, analysts have stressed the importance of robust corporate profit growth to sustain valuations, while bond yields are on the rise ahead of next week’s Federal Reserve rate-setting meeting.
Cues From Tuesday's Trading:
Optimism surrounding third-quarter earnings and relief in bond yields provided the impetus for investors to remain engaged in the stock market on Tuesday.
The major averages opened higher and showed gradual strength in early trading as investors digested earnings releases ahead of the market open. Although the indices gave up most of their gains by mid-session, renewed buying interest emerged in the afternoon. After a steady rally, they closed notably higher, albeit below their session highs.
The tech-heavy Nasdaq Composite recorded gains for the second consecutive session, while the S&P 500 Index broke a five-session losing streak.
Most sectors, excluding energy stocks, advanced during the session. Utilities experienced a significant rally, and stocks in the communication services, consumer discretionary, consumer staples, materials, and real estate sectors also attracted notable buying interest.
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