Markets Eye Rebound as Tech, Telecom, and Defense Giants Report Key Earnings

US stock markets looked poised to recover some losses Tuesday morning, following a sharp selloff that sent major indexes tumbling at the start of the week.

Investors are watching closely as a wave of high-profile earnings reports from companies like Google-parent Alphabet, Tesla, Verizon, and Lockheed Martin shape sentiment in a volatile environment.

After a Monday rout that saw the Nasdaq fall 2.6%, the S&P 500 lose 2.4%, and the Dow Jones Industrial Average drop nearly 1,000 points, futures pointed to a modest rebound. The tech-heavy Nasdaq 100 led the way early Tuesday with futures up 0.8%, followed by similar gains in the S&P 500 and Dow futures. The CBOE Volatility Index (VIX), often seen as a gauge of investor fear, remained elevated despite easing slightly from its peak.

Shares of Alphabet (GOOGL) were in focus after the US Department of Justice reportedly recommended the breakup of parts of the company, potentially requiring a divestiture of its Chrome browser. Despite the regulatory overhang, Alphabet shares showed early signs of stabilization, nudging higher in premarket trading. The company is slated to report earnings Thursday.

Tesla (TSLA) will report first-quarter earnings after markets close, with analysts anticipating a decline in profit and flat revenue compared to a year earlier. The electric vehicle maker has seen its stock slide over 40% year-to-date, driven by concerns about slowing deliveries, shrinking profit margins, and uncertainty surrounding CEO Elon Musk’s various ventures, including autonomous driving and robotics. The stock rose 0.8% in premarket trading.

Telecom giant Verizon (VZ) exceeded earnings estimates with adjusted EPS of $1.19 on $33.49 billion in revenue. However, the company reported a higher-than-expected loss of 289,000 retail postpaid phone subscribers, raising concerns about customer retention. Shares fell over 2% ahead of the opening bell despite reaffirming full-year guidance.

Earnings from major defense contractors offered a mixed picture. Lockheed Martin (LMT) posted a 4% revenue increase in Q1, driven by strong demand for military hardware. Net earnings climbed to $1.7 billion, pushing the stock up about 4% premarket.

In contrast, Northrop Grumman (NOC) saw first-quarter profit fall 49% due to increased manufacturing costs for its B-21 stealth bomber. Revenue slipped 7% year-over-year, and shares dropped nearly 9% in early trading.

RTX (formerly Raytheon Technologies) reported modest revenue growth of 5%, but shares were down more than 3% before market open. GE Aerospace (GE) beat expectations on both earnings and revenue, buoyed by robust demand for maintenance services amid aircraft delivery delays. Its stock rose nearly 5%.

With input from Quartz, the Wall Street Journal, and Investor’s Business Insider.