Investing.com - Australian shares ticked 0.2% higher at Tuesday's open, as U.S. stocks maintained their upward trajectory. The S&P 500 reset its record closing high with a modest 0.3% advance to 4850.43.
Commodities presented a mixed picture, as oil surpassed $US80 a barrel, while both iron ore and gold were lower. US-listed shares of Rio Tinto ADR (NYSE:RIO) and BHP Group Ltd ADR (NYSE:BHP) also dipped in New York trading.
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Corporate earnings are a key factor in the market's strength. This week, companies such as Netflix Inc (NASDAQ:NFLX), Tesla Inc (NASDAQ:TSLA), and Intel Corporation (NASDAQ:INTC) are set to release their quarterly results. Five sectors, led by the information technology sector, are expected to report net profit margins for the December quarter that exceed their five-year averages. Conversely, six sectors, led by the financials and healthcare sectors, are expected to report net profit margins below their five-year averages for Q4 2023.
Tesla shares slipped after Morgan Stanley (NYSE:MS) reduced its target price, citing slowing global electric vehicle momentum. In local markets, Australian shares like Cooper Energy, Coronado Global Resources, and Stanmore Resources are set to release quarterly production updates.
In overseas data, the Bank of Japan's policy decision and consumer confidence stats from the Eurozone will be keenly watched. The U.S. economic outlook appears to be improving, as indicated by the latest Conference Board leading index report. Meanwhile, China is taking measures to support market confidence following a significant drop in Chinese shares.