Futures slip as bond yields rise, BofA up on strong consumer lending
2022.04.18 14:47
FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., March 30, 2022. REUTERS/Brendan McDermid/File Photo
(Reuters) – U.S. stock index futures dipped on Monday as Treasury yields continued to rise in expectation of a tighter monetary policy, while Bank of America wrapped up earnings from Wall Street lenders with a better-than-expected quarterly profit.
Bank of America Corp (NYSE:BAC), the second-largest U.S. bank by assets, edged 1% higher in premarket trading after recording a strong growth in its consumer lending business.
Market response to first-quarter bank earnings have been mixed as JPMorgan Chase & Co (NYSE:JPM), Goldman Sachs Group Inc (NYSE:GS) and Citigroup Inc (NYSE:C) combined put aside $3.36 billion in credit loss reserves due to risks from the Ukraine war and rising inflation.
Overall, analysts expect aggregate annual S&P 500 earnings growth of 6.3%, as of last week, less optimistic than the 7.5% growth projected at the start of the year, according to Refinitiv data.
Companies including Netflix (NASDAQ:NFLX), Tesla (NASDAQ:TSLA) Johnson & Johnson (NYSE:JNJ) and International Business Machines (NYSE:IBM) are set to report this week.
Most megacap growth stocks edged lower as the benchmark 10-year Treasury yield rose 2.866%, its highest since December 2018. [US/]
However, Tesla Inc rose 0.8% as the electric automaker began preparing to reopen its Shanghai plants as the city speeds up efforts to get back to normal after a nearly three-week COVID shutdown.
Data earlier showed China’s economy slowed in March despite better-than-expected first-quarter growth numbers, worsening an outlook already clouded by COVID-19 curbs and the Ukraine war.
There was little hope of peace in Ukraine, with Russia hitting hundreds of military targets in Ukraine overnight, destroying command posts with air-launched missiles.
At 07:06 a.m. ET, Dow e-minis were down 49 points, or 0.14%, S&P 500 e-minis were down 12.25 points, or 0.28%, and Nasdaq 100 e-minis were down 51.25 points, or 0.37%.
Twitter (NYSE:TWTR) shares were up 4.4% after the micro-blogging platform adopted “poison pill” on Friday to restrict Tesla CEO Elon Musk from raising his stake to beyond 15% for a one-year period.
Didi Global Inc slumped 18.7% after the Chinese ride hailing giant said it will hold an extraordinary general meeting on May 23 to vote on its delisting plans in the United States.
