In a mixed trading session on Tuesday, stocks closed with varied results ahead of the highly anticipated Big Tech earnings. The tech-heavy Nasdaq Composite led the day's declines, falling approximately 0.8%. Meanwhile, the Dow Jones Industrial Average rose 0.4%, and the S&P 500 traded flat, missing another record closing high.

One of the key players, Microsoft, reported after-hours earnings that exceeded expectations, beating both top and bottom lines. The company's cloud revenue also surpassed forecasts. Guidance for the upcoming period will be released during the earnings call. Conversely, Alphabet, the parent company of Google, saw its shares decline by roughly 5% as fourth-quarter ad revenue fell short of expectations. However, the company did exceed expectations for both quarterly earnings and overall revenue.

Chipmaker AMD reported fourth-quarter revenue that largely met analyst expectations, leading to a 2% drop in its shares during after-hours trading. For the first quarter, AMD anticipates revenue to be around $5.4 billion, with a margin of plus or minus $300 million. This projection fell below analysts' estimates, which anticipated revenue closer to $5.7 billion.

With the "Magnificent Seven" tech megacaps, excluding Tesla, expected to drive the S&P 500 this earnings season, all eyes are now on Apple, Amazon, and Meta, who are set to release their results on Thursday.

Earlier in the day, General Motors reported strong sales and revenue figures for the fourth quarter, beating expectations. The automaker's shares rose nearly 8% as a result. However, the Federal Reserve's interest rate decision, to be announced at the end of its two-day meeting on Wednesday, remained a focal point for investors. The debate over potential interest rate cuts in March or May intensifies as markets hover near record highs.

The importance of Big Tech earnings for the health of the S&P 500 cannot be overstated. Data from FactSet shows that, excluding Tesla, the other tech giants are expected to contribute a significant 53.7% year-over-year earnings growth for the benchmark index.

Microsoft's earnings report will shed light on the success of its extensive investments in artificial intelligence. The tech giant's shares have experienced an impressive 50% surge in the past year, propelling its market capitalization over $3 trillion.

Similarly, Alphabet's earnings will be closely followed for insights into the company's AI advancements and its cloud business. Additionally, investors seek clarification on recent layoffs within Google.

In trending stocks, United Parcel Service (UPS) saw a 7% decrease in share price after the company provided weak revenue guidance for 2024, citing intense competition from e-commerce companies like Amazon. As a cost-cutting measure, UPS also announced a plan to cut 12,000 jobs, aiming to save $1 billion.

Another notable trend was General Motors' 8% share price increase following a beat on both top and bottom lines in the fourth quarter. The positive results indicate the company's efforts to recover from the effects of the UAW strike and reconfigure its electric vehicle rollout.

Although Pfizer reported fourth-quarter adjusted earnings that beat expectations, the stock fell slightly by over 1% due to a decline in revenue tied to its COVID-19 vaccine. Nonetheless, Pfizer reaffirmed its full-year guidance for 2024, expressing confidence in its pipeline innovation and commitment to patient care.

In contrast, Apple's shares declined nearly 2% after an analyst predicted a decline in iPhone shipments this year, citing weak demand in China and increased competition from generative AI-powered and foldable smartphones.

Looking ahead, investors in the bond market may find some relief as Charles Schwab's Liz Ann Sonders suggests that the drastic swings seen in 2023 due to the 10-Year Treasury yield's volatility are likely to subside. As confidence in the Federal Reserve's path forward grows, and inflation continues to decrease, last year's negative correlation between bond yields and stock performance may not persist.

Additionally, the popularity of licensed content is evident as "Suits" emerges as the most-streamed title of 2023. Netflix's acquisition of the drama underscores a resurgence in licensed content, signaling a shift away from the exclusive focus on creating original intellectual property.

As markets closed on Tuesday, the Nasdaq Composite experienced a drop of over 0.7%, with investors eagerly awaiting the earnings reports from tech giants Alphabet and Microsoft. The S&P 500 and Dow Jones Industrial Average both fluctuated, with the former experiencing a slight decline and the latter seeing a marginal increase.

JetBlue Airways and Spirit Airlines are filing for an expedited appeal following a court ruling that blocked their $3.8 billion merger. While Spirit Airlines' shares rose nearly 4%, JetBlue fell by 6%. Analysts believe the airlines have a strong case, asserting that profitability is crucial for success in the highly competitive industry.

Despite ongoing economic uncertainties, consumer confidence in the United States continues to show resilience. The Conference Board's consumer confidence index for January rose to its highest level since December 2021, reflecting optimism among individuals. Additionally, the latest Job Openings and Labor Turnover Survey revealed an increase in job openings, signaling a steady labor market.

As anticipation builds for Big Tech earnings, the stock market remains dynamic, driven by a mix of positive and negative developments across various sectors.