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  • Canaccord Genuity's chief market strategist Tony Dwyer tells TheStreet's Brian Sozzi that his "shock drop indicator" suggests the market bottom for the year has already formed. Read here for more.
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Market Snapshot

Wall Street futures extended gains Tuesday, following a solid session for European stocks, following stronger-than-expected first quarter earnings from Goldman Sachs (GS) as investors reacted to a mixed set of economic data from China and continued to focus on the underlying strength of the U.S. corporate earnings season.

Equity futures suggest another solid start to the Tuesday session, with contracts tied to the Dow Jones Industrial Average marked 196 points higher from Monday's close, indicating an opening bell gain of 220 points, while those linked to the S&P 500 are pointing to a 13.5 point gain for the broader benchmark. Nasdaq futures were marked 35.25 points to the upside.

Goldman Sachs topped Wall Street forecasts with a 27% first quarter profit surge thanks to big improvements in trading revenue linked to the recent global market volatility. Goldman posted earnings of $6.95 per share for the three months ending in March, well ahead of the $5.58 per share estimate, helping the shares gain 0.25% in pre-market trading. 

The Stoxx Europe 600, the region's broadest measure of share prices, rose 0.32% by mid-day in Frankfurt, paced by a 0.97% gain for the DAX performance index in Germany and a 0.62% advance for the CAC-40 in Paris. Britain's FTSE 100 was slower to respond, rising only 0.17% as investors factored-in the eighth consecutive day of gains for the pound, which was marked at 1.4330 against the U.S. dollar in early London dealing after strong February wage data looks to have cemented the case for a second Bank of England rate increase next month.

Earnings will once again dominate the early portion of the trading day, with first quarter reports from Dow components in Action Alerts PLUS holding UnitedHealth (UNH) , Johnson & Johnson (JNJ)  , Goldman Sachs and IBM Corp. (IBM) . 

Netflix Inc. (NFLX) shares surged in pre-market trading Tuesday after the online media streaming group posted stronger-than-expected first quarter earnings and the biggest jump in subscriber growth in sixteen years. Netflix shares were marked 7.14% higher in pre-market trading in New York, indicating an opening bell price of $329.77 each, a move that would take its year-to-date gain to an astonishing 70% and value the company at more than $142 billion -- just $10 billion shy of rival Walt Disney Co. DIS.

TheStreet's Executive Editor Brian Sozzi analyzes the Netflix numbers below. 

Netflix is a beastttttttttttt $NFLX https://t.co/oSyMqmM1W7

— Brian Sozzi (@BrianSozzi) April 16, 2018

Tesla Corp. (TSLA) shares fell sharply in pre-market trading Tuesday after the carmaker said it would temporarily suspend production of its Model 3 sedan in order to address "bottlenecks" at its Freemont, California facility.

Tesla shares were marked 0.86% lower in pre-market trading in New York, following yesterday's 3.04% slump, indicating an opening bell price of $288.7 each, a move that would take its year-to-date decline to around 7%. However, Tesla shares have lost about 24% since hitting an intra-day high of over $385 last June.

S&P 500 companies are expected to report first quarter earnings growth of around 20% compared to the same period last year, according to FactSet estimates, although stocks are still trading at a 12-month forward P/E ratio of 16.4, a figure that is well above the 10-year average of 14.3.

The U.S. dollar index, which measures the greenback against a basket of six global currencies, was modestly weaker in early European trading at 89.39 while benchmark 10-year U.S. Treasury bonds were slightly firmer and trading at a yield-to-maturity of 2.83%.

Overnight in Asia, markets were mixed following China's stronger-than-expected first quarter GDP reading of 6.8%, which was boosted by solid consumer spending, with investors instead focusing on a weaker-than-anticipated reading for March manufacturing activity and industrial output in the world's second largest economy.

The region-wide MSCI Asia ex-Japan index slipped 0.15% into the close of the session while the benchmark Nikkei 225 in Japan ended the day up 0.06% at 21, 847.59 points. China's Shanghai Composite closed 1.4% to the downside at 3,607.52 points.

Global oil markets were softer again Tuesday, following yesterday's 1.8% decline for both U.S. and global benchmarks, despite data from China showing a record rate for crude refining of 12.1 million barrels per day from the world's second biggest energy user.

Brent crude futures for June delivery were marked 0.6% lower at $71.44 per barrel while WTI contracts for the same month were seen 1% to the downside at $66.23 per barrel. 

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