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Stock Futures Are Flat After Dow and S&P 500 Close at Records, Big Tech Earnings on Deck

Brendan McDermid | Reuters

U.S. stock futures were steady in overnight trading on Monday as investors await a slew of major technology earnings with the broader market at a record high.

Dow futures rose TK points. S&P 500 futures gained tk% and Nasdaq 100 futures rose tk%.

Shares of social media giant Facebook ticked 3% higher in after-hours trading on Monday following its quarterly results where earnings topped analysts' earnings expectations. Facebook missed expectations for revenue and monthly active users.

The Dow Jones Industrial Average and S&P 500 closed at record highs on Monday. The Dow gained 64 points. The S&P 500 gained 0.5%, helped by a 12% rally in Tesla's stock as the electric carmaker hit a $1 trillion market capitalization for the first time.

The Nasdaq Composite was the outperformer, rising 0.9%. The technology-focused average is about 1.1% from its record high.

Technology darlings Alphabet and Microsoft report earnings after the bell on Tuesday. Other key reports include 3M, Eli Lilly, General Electric, UPS and Visa. Microsoft bulls are expecting a strong quarter for Microsoft, bolstered by its key Azure business. Analysts are expecting Alphabet earnings to come in 43% higher year over year.

As of the close on Monday, 84% of the 117 companies in the S&P 500 that have reported earnings beat expectations, according to Refinitiv. S&P 500 companies are expected to grow profit by about 35% in the third quarter.

"Earnings season is off to another great start, but now the big test is will the big tech names step up? With stocks at all-time highs, the bar is indeed quite high and tech will need to impress to help justify stocks at current levels."

Twitter, Hasbro, JetBlue, Lockheed Martin, Novartis, PulteGroup, Advanced Micro Devices, Chubb and Robinhood also report quarterly earnings on Tuesday.

New home sales will be released at 10:00 a.m. ET on Tuesday. Economists polled by Dow Jones are expecting that home sales grew 760,000 in September, up from 740,000 in August.

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