Beige book, Tesla earnings, Morgan Stanley: 3 things to watch

By Liz Moyer

Investing.com -- Stocks were muted on Tuesday as investors took in mixed first-quarter reports from big companies.

While Bank of America (NYSE:BAC) and Johnson&Johnson (NYSE:JNJ) beat expectations, other big companies such as Goldman Sachs (NYSE:GS) fell short on some measures. For Goldman, the quarter was lackluster for fixed-income trading, which didn’t match expectations.

It’s just the start of the earnings season, however, and analysts are starting to turn slightly more positive on their outlook. They are now forecasting first-quarter earnings for the S&P 500 to fall 4.8% from the same time last year compared with the 5.2% drop expected just before earnings kicked off. 

After the banks, technology, consumer goods and retailers report, as well as travel-related, energy and industrial companies.

Federal Reserve officials are closely watching earnings as well as economic data as they head toward their next meeting in May, when they are expected to raise interest rates by another quarter of a percentage point. 

Tomorrow’s release of the Fed’s Beige Book could provide more color for investors on the economic conditions around the country.

Here are three things that could affect markets tomorrow.

1. Beige book

The Fed’s periodic Beige book survey of its 12 district banks is expected out at 14:00 ET (18:00 GMT). The survey provides anecdotes on the state of the economy, jobs, manufacturing activity and tourism around the country, giving investors a temperature check on the health of the system.

2. Tesla earnings

Electric vehicle maker Tesla Inc (NASDAQ:TSLA) is expected to report earnings per share of 86 cents on revenue of $23.78 billion.

3. Morgan Stanley

Investment bank Morgan Stanley (NYSE:MS) is expected to report earnings per share of $1.75 on revenue of $14.03B.