By Dhirendra Tripathi
Investing.com -- Stocks continued their tumultuous trading on Tuesday, falling and then recovering as they did in the previous session while the Federal Reserve started its two-day policy meeting.
A number of earnings reports beat expectations, including IBM (NYSE:IBM) and 3M (NYSE:MMM), but that had a muted effect on stocks. Microsoft (NASDAQ:MSFT) reports after the closing bell and Tesla and Intel report on Wednesday.
Tech stocks have had a particularly bad run, with the Nasdaq falling into correction territory this year. Rising rates – investors expect four Fed rate hikes this year – diminish the value of future earnings for growth stocks.
Two years of stimulus from the Fed has put a fire under the tech sector, lifting shares of big companies like Apple (NASDAQ:AAPL) to record highs and record market valuations, but with the Fed starting to remove that stimulus the prospects seemed to dim.
Nasdaq has had its worst start to a year since 1980, Reuters reported.
Another factor weighing on stocks is the tensions between the U.S. and Russia over the Ukraine situation. Investors are fleeing risk assets such as stocks and cryptocurrencies and seeking safe haven investments such as gold.
Here are three things that could affect markets tomorrow:
1. Tesla earnings
Tesla Inc (NASDAQ:TSLA)’s fourth-quarter revenue is seen at a record $16.88 billion with profit per share coming in at $2.25, according to analysts tracked by Investing.com. Analysts will be listening to what Elon Musk’s company says about the outlook for production, as well as competition from newer EV companies and old-guard auto makers such as General Motors Company (NYSE:GM) and Ford Motor Company (NYSE:F)
2. Abbott Labs earnings
Abbott Laboratories (NYSE:ABT), the maker of a popular and hard-to-find at-home rapid test for Covid-19, is expected to report revenue of $10.66 billion and profit per share of $1.21 in the fourth quarter. Analysts will be listening to what executives say about production as the Biden administration pushes for more at-home testing.
3. Intel earnings
Intel Corporation (NASDAQ:INTC)s fourth-quarter profit per share is expected to be 90 cents on likely revenue of $18.33 billion, according to data by Investing.com. Analysts will be listening for clues on the supply chain and chip production efforts.
–Reuters and Investing.com staff contributed to this report.