Wall Street trending in the right direction after rough open
Investors are perhaps a little uncertain on Tuesday as US earnings season continues to pick up steam
12:10pm: Tesla shares slow despite record net income
In the US, the Dow has recovered from its early weakness, landing at just 15 points below the flatline at 33,966 just after noon. The Nasdaq was down 29 points, 0.2%, at 14,110, while the S&P 500 was flat at 4,188.
"Yesterday’s Tesla earnings brought a more tech-led focus, but that will only ramp-up further when we see earnings data from the likes of Alphabet and Microsoft," Mahony wrote. "The wide divergence in market performance between tech and pro-cyclical stocks has led to a similar disparity in market expectations, where tech names face a relatively high marker compared with their hard-hit peers. With that in mind, the fact that we are seeing outperformance for US banks and restaurants over tech does highlight the questions over quite whether these momentum stocks will be able to justify their lofty valuations."