Equity futures are almost flat prior to bank earnings seasons

Equity futures are almost flat prior to bank earnings seasons

U.S. stock futures were mostly unchanged on Monday night after the Dow Jones Industrial Average rose to almost 35,000 ahead of the second-quarter earnings season for banks, which begins on Tuesday.

The Dow Jones Industrial Average futures shed 10 points or 0.03%. The S&P 500 futures fell 0.06% and the Nasdaq 100 fell 0.002%.

In the regular trading session, the Dow has risen 126.02 points to close just below 35,000. The S&P 500 and Nasdaq Composite advanced 0.3% and 0.2%, respectively, to record closes.

Investors are looking to the bank’s upcoming quarterly results, starting with JPMorgan and Goldman Sachs Tuesday before the opening bell. JPMorgan and Goldman Sachs ended the day 1.4% and 2.3% higher, respectively. Banks are expected to double this quarter, following the 138% earnings growth the sector saw in the first quarter. The S&P 500 broadly is expected to produce its strongest earnings growth since the fourth quarter of 2009.

Jeff Kilberg, Chief Investment Officer of Sanctuary Wealth, said: “The eyes are on major banks and they will be in good shape for the coming weeks.”

JPMorgan Chase, Goldman Sachs, and PepsiCo will start their earnings season with results expected before the bell on Tuesday. Bank of America, Citigroup, Wells Fargo, Delta Air Lines, and BlackRock reported on Wednesday, and Morgan Stanley, Truist and United Health posted their results on Thursday.

Federal Reserve Board Chair Jerome Powell will be present in front of Congress on Wednesday and Thursday to provide up-to-date information on monetary policy. He argued that the Fed’s simple policies would remain until further developments in employment and inflation targets.

Damon Harrison
Market Analyst, IPG Group