will announce its fiscal second-quarter earnings after the bell. Shares of Microsoft climbed more than 1%. Apple, Facebook, Caterpillar and Tesla are all set to report later this week., as enthusiastic retail investors active in chat rooms continued to bet against short-selling hedge funds. The volatility has some investors concerned about stocks becoming detached from fundamentals as speculation runs rampant.
"The short squeeze/volatility we saw in heavily-shorted stocks such as GameStop and others only further confirms that, at least in the near term, complacent/frothy investor sentiment is the biggest near-term risk to stocks," Tom Essaye, founder of Sevens Report, said in a note Tuesday.Companies started the earnings season with a high beat rate.
"The combination of virus containment and policy support should bolster economic growth this year, encouraging broader industry participation in economic activity and strong earnings recoveries in later quarters," said Lauren Goodwin, economist and portfolio strategist at New York Life Investments.President Joe Biden's $1.9 trillion proposal calls for $1,400 direct deposits, but the plan has drawn critiques from a bipartisan group of lawmakers because of its lofty price tag.