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US open: Stocks head south ahead of big tech earnings

Wall Street stocks were in the red early on Tuesday as market participants awaited some big-time tech earnings scheduled for after the close.
As of 1520 BST, the Dow Jones Industrial Average was down 0.12% at 33,942.30, while the S&P 500 was 0.19% weaker at 4,179.77 and the Nasdaq Composite came out the gate 0.45% softer at 14,074.60.

The Dow opened 39.27 points lower on Tuesday, extending losses recorded in what was a mixed session for major indices a day earlier.

Tesla shares were in the red prior despite the electric carmaker posting record quarterly net incomes of $438.0m, while UPS shares soared after smashing Wall Street estimates with first-quarter revenue growth of 27%.

Earnings will be firmly in focus after the session also, with Alphabet, Microsoft and AMD reporting following the close of trading.

On the macro front, S&P/Case-Shiller’s home price index revealed home prices had seen their biggest gain in 15 years in February, rising 12% year-on-year, up from 11.2% in January, as tight supply and strong demand lead to bidding wars.

Elsewhere, consumer confidence surged to a 14-month high in April, with rising vaccinations, falling Covid-19 cases and a resurgent US economy easing anxieties. According to the Conference Board, consumer confidence climbed to 121.7 in April from a revised print of 109 for March – the highest level seen since February 2020.

Lastly, the Richmond Federal Reserve’s April manufacturing index came in at 17, flat month-on-month and versus expectations for a reading of 22 estimate.

Also in focus, the Federal Reserve will kick off its two-day policy meeting today, with the central bank not expected to take any action.

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