Microsoft reports, Alphabet earnings, Coca-Cola: 3 things to watch

Investing.com -- Tech stocks were leading gains on Monday, recovering earlier losses as bond yields eased back. Investors have tech earnings on their minds.

This week features reports from Microsoft, Alphabet (NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), and Amazon (NASDAQ:AMZN) among the big tech firms. Tech stocks soared earlier this year on enthusiasm for the promise of artificial intelligence technology, but investors also want to hear updates on cloud computing and efficiency efforts.

The 10-year Treasury yield rose above 5% earlier on Monday but by the last half hour of the stock trading session it had settled back to around 4.85%.

Federal Reserve officials have suggested in recent days that higher bond yields could have the same effect as interest rate increases in helping to cool the economy. Futures traders have put a 98% probability on interest rates holding steady when the Fed next meets in November, and a 74% probability on rates remaining the same in December.

The Fed will be watching this week's reading of gross domestic product for the third quarter and Friday's inflation report, in the form of the personal consumption expenditures index, for more input into its decision making.

Meanwhile, corporate earnings continue to pour out. Here are three things that could affect markets tomorrow:

1. Microsoft earnings

The software giant Microsoft Corporation (NASDAQ:MSFT) is expected to report earnings per share of $2.65 on revenue of $54.5 billion. Analysts will be listening for updates since it closed its deal for Activision Blizzard (NASDAQ:ATVI), and on its AI-related projects.

2. Alphabet reports

Google-parent Alphabet Inc Class C (NASDAQ:GOOG) is also reporting earnings after tomorrow's closing bell. Analysts expect earnings of $1.45 a share on revenue of $75.9 billion.

3. Coca-Cola earnings

The beverage giant Coca-Cola Co (NYSE:KO) is expected to report earnings of 69 cents a share on $11.4 billion in revenue. Analysts will be listening for what it says about consumer tolerance for price hikes and overall demand.