US stocks surge as investors brace for earnings from mega-cap tech companies

A trader works at the New York Stock Exchange NYSE in New York, the United States, on March 9, 2022.Michael Nagle/Xinhua via Getty

• US stocks scored a three-day win streak Tuesday as investors prepare for earnings results from mega-cap tech.

• Alphabet and Microsoft are scheduled to release earnings after the close on Tuesday, with Apple and Amazon scheduled for Thursday.

• With 20% of the S&P 500 having reported earnings so far, 75% have beaten profit estimates by a median of 5%. 

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US stocks surged more than 1% on Tuesday, with all major indexes scoring a three-day win streak as investors gear up for third-quarter earnings results from mega-cap tech giants. The S&P 500 closed above a closely watched resistance level at 3,800, but is running up to resistance at its 50-day moving average near 3,870.

Alphabet and Microsoft are ondeck to report third-quarter results after the market close on Tuesday, with Amazon and Apple scheduled to report earnings on Thursday. Investors are looking for clues as to whether an economic recession is likely in the near future.

But so far, so good, as early results have shown that businesses remain resilient to any economic weakness. 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%. 

Here's where US indexes stood at the 4:00 p.m. ET close on Tuesday: 

• S&P 500: 3,859.13, up 1.63%

• Dow Jones Industrial Average: 31,836.74, up 1.07% (337.12 points)

• Nasdaq Composite: 11,199.12, up 2.25%

Here's what else happened today:

• Russian oil will need to flow back into the crude market to solve an unprecedented world energy crisis, the head of the International Energy Agency said Tuesday.

• The market for liquefied natural gas will tighten if China's economy rebounds and it goes up against energy-hungry Europe for supply, the IEA's chief also said.

• JPMorgan CEO Jamie Dimon warned that geopolitical matters are more concerning than a recession right now. Regarding a recession, he said "we'll manage right through that."

• The British pound surged against the dollar on Tuesday as Britain's new Prime Minister Rishi Sunak said he will correct his predecessor's policy errors that rocked financial markets. Pound sterling rose as much as 1.9% to $1.1498, its highest since September 15.

• West Texas natural gas prices turned negative for the first time since 2020 on Tuesday, as booming production and pipeline-capacity constraints left local supplies with nowhere to go.

• Interest rates fell considerably as the Federal Reserve faces more pressure to pivot away from its aggressive interest rate hikes. Senator Sherrod Brown reminded the Fed in an open letter on Tuesday that it has a mandate to promote maximum employment, and outsized interest rate hikes risk that.

In commodities, bonds and crypto:

• West Texas Intermediate crude oil rose 0.50% to $85.00 per barrel. Brent crude, oil's international benchmark, fell 0.17% to $93.10.

• Gold rose 0.41% to $1,660.20 per ounce.

• The yield on the 10-year Treasury tumbled 15 basis points to 4.10%.

• Bitcoin rose 4.64% to $20,242, while ether jumped 11.12% to $1,497.

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