U.S. stock futures were mostly flat on Monday night after the Dow Jones Industrial Average rose to almost 35,000 ahead of the second-quarter earnings season for banks, which kick off Tuesday.
The Dow Jones Industrial Average futures fell 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 rose 126.02 points to close just below 35,000. The S&P 500 and Nasdaq Composite gained 0.3% and 0.2%, respectively, to record closes.
Investors are turning their attention to banks as they prepare to release their second quarter earnings this week, 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.
“High expectations for earnings and each companies’ forward guidance will push markets higher or disappointment may create a small pullback in equity markets,” said Jeff Kilburg, chief investment officer at Sanctuary Wealth. “Eyes will be on the major banks to set the tone for the next few weeks of earnings.”
Bank of America, Citigroup, Wells Fargo and Morgan Stanley all ended the day higher as well. They will report their earnings later in the week.
Federal Reserve Chairman Jerome Powell is scheduled to appear in front of Congress Wednesday and Thursday to provide an update on monetary policy. He has maintained that the Fed’s easy policies will remain intact until there’s more progress on its employment and inflation goals.
Source: Finance - cnbc.com
