Futures muted as Wall St awaits more big bank earnings
2023.07.18 05:59
© Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 12, 2023. REUTERS/Brendan McDermid
(Reuters) – U.S. stock index futures were subdued on Tuesday as investors stayed on the sidelines ahead of U.S. retail sales data and quarterly earnings reports from more big banks and industry heavyweights.
Bank of America (NYSE:) edged up 0.4% in premarket trading, while Morgan Stanley (NYSE:) rose 1.1% ahead of their second-quarter results due later in the day.
“Investors will be looking at how well these banks benefited from rising rates,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
Some of the largest U.S. banks, including JPMorgan Chase (NYSE:) and Wells Fargo (NYSE:), said on Friday they got a profit boost from higher rates, pointing towards a resilient economy.
Regional lenders like Bank of New York Mellon (NYSE:), Charles Schwab (NYSE:) Corp climbed 0.4% and 1.9%, respectively, ahead of their reports.
The S&P 500 banks index has fallen 5.2% so far this year, underperforming the which has notched a 17.8% gain, after the biggest banking crisis since 2008 earlier this year took down three lenders and pummeled the sector.
Lockheed Martin (NYSE:) inched 0.9% up in thin trading ahead of its results, where the weapons maker is expected to post a rise in second-quarter profit as geopolitical tensions fuel strong demand for defense equipment.
Overall earnings across industries are expected to decline 8.1% for the quarter, according to Refinitiv data.
At 05:03 a.m. ET, were up 1 point, or 0%, were down 1.25 points, or 0.03%, and were down 14.75 points, or 0.09%.
Wall Street has rallied since last week after consumer prices and producer prices data provided evidence that the economy had entered a disinflation phase, stoking hopes that the Federal Reserve will soon end its monetary policy tightening.
Investors are focused on further signs that inflation is cooling, with the readings on U.S. retail sales and industrial production to be released later on Tuesday.
Pinterest (NYSE:) gained 3.4% as Evercore ISI upgraded its rating on the stock to “outperform.”
