US STOCKS-S&P 500, Nasdaq poised for higher open as earnings deluge takes center stage

By Pranav Kashyap and Twesha Dikshit

Feb 3 (Reuters) - The S&P 500 and the Nasdaq looked set for a firm open on Tuesday, stabilizing after a commodity rout in the previous session, as investors geared up for a flood of corporate results through the week.

Palantir Technologies PLTR.O jumped 11.2% in premarket trading after upbeat results highlighted demand for its military-grade AI tools, with U.S. defense spending helping lift quarterly sales.

Teradyne TER.O surged 22% after the chip-testing equipment maker issued a strong first-quarter forecast, riding a separate wave of AI-linked investment as big tech pours multibillion-dollar sums into data-center expansion.

"Palantir's good earnings is helpful for the AI trade," said John Campbell, senior portfolio manager, Allspring Global Investments.

Alphabet GOOGL.O rose 1.3% after notching a record high in the previous session, while Amazon AMZN.O added 0.8%. Both the "Magnificent Seven" heavyweights are due to report later this week, offering investors another read on the race to commercialize artificial intelligence.

Advanced Micro Devices AMD.O and server maker Super Micro Computer SMCI.O, both due to report after the close, gained around 2% each.

"We've been observing a lot of fast money pre-positioning into names right ahead of earnings trying to play for an earnings pop. We're seeing a little bit of that," Campbell added.

Recent earnings from the biggest technology companies have underscored a growing investor focus on payback from soaring capital expenditure plans. Spending on AI-related infrastructure has climbed sharply, putting pressure on companies to translate investment into measurable returns that can support lofty valuations.

Meanwhile, PayPal PYPL.O forecast 2026 profit below estimates, sending its shares falling 17.2%.

On the macro-front, the House of Representatives will try to pass a deal later in the day to end the latest shutdown that has again thrown economic releases off schedule, delaying the closely watched January jobs report that had been due on Friday.

Tuesday's JOLTS report has also been postponed.

At 8:28 a.m. ET, Dow E-minis YMcv1 were up 3 points, or 0.01%, S&P 500 E-minis EScv1 were up 17.75 points, or 0.25%, and Nasdaq 100 E-minis NQcv1 were up 144.25 points, or 0.56%.

On Monday, the S&P 500 and the Dow ended near record levels, while the Nasdaq finished 0.5% higher.

EARNINGS DELUGE

About one quarter of the S&P 500 is set to report quarterly results this week and analysts expect S&P 500 companies to have grown their earnings nearly 11% in the December quarter, up from an estimate of about 9% at the start of January, according to LSEG data.

Pfizer PFE.N shares fell 4.6% despite posting fourth-quarter profit above estimates, while Merck's MRK.N shares were down 0.7% after forecasting 2026 sales below expectations.

PepsiCo PEP.O shares were volatile, up 0.5%, as investors tried to digest the announced price cut on core brands such as Lay's and Doritos.

Chipotle Mexican Grill CMG.N, Cadbury maker Mondelez MDLZ.O and household products maker Clorox CLX.N are scheduled to report after the bell.

Markets will watch for clues on consumer trends from earnings reports after last month's data showed consumer confidence dropped to an over 11-year low in January.

Markets will also keep an eye on Fed official Thomas Barkin's comments on the docket later in the day.