Overview

• Earnings season is showing companies largely beat already low expectations but the impact on the broader market and economy remains uncertain given the Federal Reserve's tightening policies and possibility of a recession.
• Tech stocks dropped Monday affecting major companies like Alphabet and Netflix though 90% of companies reported earnings above estimates so far according to Bank of America.
• Banks like Bank of America and Goldman Sachs reported mixed results Tuesday with some exceeding and missing different expectations.
• Johnson & Johnson beat earnings estimates Tuesday but shares still fell over 2% showing the complex reaction to results.
• The streaming giant Netflix will report earnings after hours Tuesday which may provide more insight into the state of the consumer and wider economy.