Wall Street opens mostly higher as focus shifts to earnings

After opening mostly higher, US stocks experienced a decline in early trading on Tuesday, with the S&P 500 falling about 0.1% and the Nasdaq Composite dropping about 0.3%.

The Dow Jones Industrial Average rose by 0.1% on Monday, following a warning from Fed Chair Jerome Powell that the Federal Reserve would be cautious on policy.

As earnings season is halfway through, investors are awaiting Tuesday’s corporate results to help boost gains for stocks. Spotify shares jumped after strong guidance from the music streamer, while Eli Lilly’s stock surged after its 2024 profit forecast exceeded estimates.

Ford is expected to report after the market close. Investors will also be watching for Fed speakers Loretta Mester and Patrick Harker to discuss policy. Palantir stock soared over 25% on Tuesday morning, thanks to its AI advancements, which it believes will drive US commercial revenue growth by nearly 40% in 2024.

Spotify Technology reported fiscal fourth quarter earnings that missed expectations, but strong guidance helped boost shares. The company reported an operating loss of 75 million euros ($80.6 million) in the quarter, but guided to a strong Q1 operating income of 180 million euros.