- A trio of bank earnings are expected to set the tone for Tuesday trade
- Wall Street watches for data on retail sales later in the session
- J&J beats on the top and bottom line
U.S. stock futures were trading on either side of unchanged Tuesday morning a day after major equity indexes eked out a round of fresh all-time closing highs as Wall Street awaited a trio of bank earnings — likely to set the tone for trading on the day.
How are the major benchmarks performing?
Futures for the Dow Jones Industrial Average YMU19, -0.08% were little changed, down less than 0.1% at 27,332, or off 10 points, those for the S&P 500 index ESU19, -0.03% inched less than a point higher at 3,017.75, while Nasdaq-100 futures NQU19, -0.02% moved less than 0.1% higher at 7,991.
On Monday, the Dow DJIA, +0.10% gained 27.13 points, or 0.1% record of 27,359.16, the S&P 500 index SPX, +0.02% added 0.53 point, or less than 0.1%, to end at 3,014.30. The Nasdaq Composite Index COMP, +0.17% rose 14.04 points to reach 8,258.19, a 0.2% increase. All three major indexes scored record closes.
What’s driving the market?
Shares of JPMorgan Chase & Co. JPM, -1.21% Goldman Sachs GS, -1.10% and Wells Fargo & Co. WFC, -1.37% were in focus as the major U.S. lenders were set to deliver second-quarter results following a report from Citigroup Inc. C, -0.08% on Monday.
Investors will watch results from financial services for signs of the impact of tariff disputes between Beijing and Washington and a regime of ultralow and negative interest rates across the globe.
The Federal Reserve has hinted strongly that it is likely to cut rates as it attempts to dull the effect of trade conflicts and expectations that the economy may weaken somewhat in the 11th year of a history-setting economic expansion.
“Traders will be keeping an eye on the banks trading divisions, as revenue from trading has been subdued lately. Broadly speaking, fees from investment banking and wealth management have been on the rise, and investors will want to see income growth from advisory services,” wrote David Madden, market analyst at CMC Markets UK, in a daily research note.
Against a lack of key drivers, however, trade has been listless across global markets.
“The bullish move that some equity markets enjoyed thanks to the slight improvement in US-China trade talks, and the chatter about the Federal Reserve lowering rates, has run out of steam, and some traders are taking a breather,” Madden wrote.
Meanwhile, across the pond, the British pound GBPUSD, -0.7909% was under pressure against the dollar, dropping 0.4%, after Boris Johnson and Jeremy Hunt, the two candidates vying to take over from departing Prime Minister Theresa May, both said Monday evening they wouldn’t accept the so-called Irish backstop, previously agreed with the European Union as part of the long negotiations over the U.K’s planned exit from Europe’s trade bloc.
In economic data, investors will watching for a reading of retail sales for June, which are due at 8:30 a.m. Eastern Time. At the same time, a report on import and export prices will be released. At 9:15 a.m. a report on industrial production for June is set to be released.
Several Federal Reserve officials are expected to deliver speeches Tuesday, including Federal Reserve Board Gov. Michelle Bowman, Dallas Fed President Rob Kaplan and Chicago Fed President Charles Evans.
Which stocks are in focus
Shares of Dow-component Johnson & Johnson JNJ, +0.31% are in focus as the health-care retailer produced quarterly results that were better than expected. Shares of J&J were up 0.8% in premarket trade.
JPMorgan’s stock was flat, while those for Goldman were up 0.3% in premarket action. Both companies are members of the Dow. Meanwhile, shares of Wells Fargo weren’t actively traded before the opening bell.
Shares of Facebook Inc. FB, -0.47% were in focus as executives from the social-media giant are set to explain its digital currency venture Libra coin to a Senate banking committee later Tuesday. Facebook’s stock was less than 0.1% higher before the opening bell.
How are other markets trading?
The yield on the 10-year Treasury note TMUBMUSD10Y, +0.42% was at 2.098%
In Asia, stocks ended mixed, with the China CSI 300 000300, -0.45% falling 0.5%, Japan’s Nikkei 225 NIK, -0.69% declining 0.7% and Hong Kong’s Hang Seng Index HSI, +0.23% advancing 0.2%. European shares were virtually unchanged, with the Stoxx Europe 600 SXXP, +0.05% edging less than 0.1% higher.
In commodities markets, crude-oil prices CLQ19, +0.22% rose 0.3%. Gold prices GCQ19, +0.14% advanced 0.2%.
The U.S. dollar DXY, +0.35% rose 0.2% higher, as measured by the ICE U.S. Dollar Index.
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