Here are five things you must know for Tuesday, April 24:
1. -- Stocks on the Rise
U.S. stock futures were higher Tuesday, April 24, even as the yield on the 10-year Treasury flirted with 3% and oil prices rose, ensuring inflation concerns will remain a focus for Wall Street.
Contracts tied to the Dow Jones Industrial Average rose 136 points, while those linked to the broader S&P 500 gained 14.50 points. Futures for the Nasdaq were up 33.75 points.
Market sentiment was likely to remain clouded by developments in the bond market, where benchmark U.S. Treasury bond yields looked set to breach the 3% barrier for the first time since 2014 as investors fretted over faster inflation - driven largely by commodity price increases - and the subsequent reaction from the Federal Reserve. At last check, the yield on the 10-year Treasury was at 2.964%.
The U.S. economic calendar on Tuesday includes New Home Sales for March at 10 a.m. ET, and Consumer Confidence for April at 10 a.m.
Stocks finished mostly to the downside on Monday, April 23. The Dow Jones Industrial Average fell 14 points, or 0.06%, to 24,448, and the Nasdaq declined 0.25%. The S&P 500 eked out a gain of 0.01%.
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2. -- Profit Surges at Google Parent Alphabet
Shares of Google parent Alphabet Inc. (GOOGL) slipped slightly in premarket trading on Tuesday after the search giant easily beat first-quarter earnings and revenue expectations but concerns about rising costs muted the positive reaction from investors.
Earnings of $9.93 a share beat analysts' expectations of $9.28, while first-quarter revenue of $31.15 billion topped estimates of $30.29 billion. Net profit soared 73% to $9.4 billion.
TheStreet's Eric Jhonsa noted how traffic acquisition costs - the ad revenue-sharing payments Google makes to the likes of phone OEMs, carriers and publishers - remained a real headwind. For the second quarter in a row, TAC equaled 24% of Google's ad revenue vs. 22% a year earlier. Johna also said elevated hardware/service costs were raising eyebrows.
"Overall, it was encouraging to see the company rebound from last quarter's disappointing earnings result with a strong beat on the bottom line, however, just like quarters in the past, we believe the muted after-hours reaction to the print relates to uneasiness over rising TAC," said Cramer and the AAP team. "The bears will point to this as a signal that profitability growth may become unsustainable in the long run, however we believe that the vast opportunities that Mobile brings with it mean this is just a necessary evil, and Alphabet's push into the Cloud and Hardware represents two additional paths of diversification away from search."
3. -- 3M, Caterpillar, Coca-Cola Report Earnings
Eli Lilly & Co. (LLY) reported first-quarter adjusted earnings of $1.34 a share, higher than estimates of $1.13. The company also raised its outlook for 2018 earnings.
3M Co. (MMM) reported first-quarter earnings of $2.50 a share, meeting Wall Street forecasts. The company narrowed its outlook for adjusted 2018 earnings.
Caterpillar Inc.'s (CAT) adjusted profit in the first quarter came in at $2.82 a share, easily beating forecasts of $2.12. The company also raised its full-year forecast.
Coca-Cola Co. (KO) earned an adjusted 47 cents a share in the first quarter, 1 cent ahead of estimates. Revenue fell 16% to $7.6 billion but still topped forecasts of $7.3 billion.Verizon Communications Inc. ( VZ) posted first-quarter adjusted profit of $1.17 a share, 6 cents ahead of estimates. Revenue was $31.77 billion, topping forecasts of $31.25 billion.
4. -- Amazon Is Building a Domestic Robot
Codenamed "Vesta," after the Roman goddess of the hearth, home and family, the project originated a few years ago, but this year Amazon began to aggressively ramp up hiring, Bloomberg reported. People briefed on the plan said the company hopes to begin placing the robots in employees' homes by the end of 2018, and potentially with consumers as early as 2019, though the timeline could change, and Amazon hardware projects are sometimes killed during their early phases.
Details remained vague about what Amazon's robot would look like, should it launch. However, Bloomberg note that its sources "speculate that the Vesta robot could be a sort of mobile Alexa," and that prototype robots "have advanced cameras and computer vision software and can navigate through homes like a self-driving car."
5. -- United Airlines CEO Gives Up His Bonus
United Airlines CEO Oscar Munoz, criticized for his initial response to a passenger being violently dragged off a plane, gave up his 2017 bonus.
Munoz's compensation, mostly in stock awards, fell to $9.6 million in 2017 from $18.7 million in 2016.
United Continental Holdings Inc. (UAL) , the parent of United Airlines, also said in a filing that Chairman Robert Milton was stepping down and the board would pick a new independent chairman.