US equity futures rose early in trading, pointing to gains at Tuesday’s opening as investors keep an eye on earnings reports from some of the country’s largest banks.
Dow futures rose 90 points. The S&P 500 and Nasdaq 100 futures rose 0.3% and 0.4%, respectively.
On Monday, the Dow Jones Industrial Average gave up 500 points to end the day with 10 points. The S&P 500 ended the day down 0.95% after having previously risen 1
The Nasdaq Composite fell 2.1%, pushed down by losses on Netflix, Microsoft, Amazon and Facebook. The technology-intensive index rose almost 2% from its session high on Monday.
The Nasdaq-100, which is made up of the 100 largest non-financial companies in the Nasdaq Composite, traded briefly above 11,000 for the first time before falling 2.2%.
“I think what we see here is the ongoing pressure between the increasing cases of coronavirus and the states that are reopening economies and the market that is struggling with balance and how it will change over time” said Susan Schmidt, head of US stocks at Aviva Investors, told CNBC.
At the beginning of the session on Monday, stocks were helped by news that Pfizer and German biotech BioNTech SE had received FDA fast-track labeling for two of the company’s four coronavirus vaccine candidates.
Cases continued to hit record highs in the US over the weekend, as the number of deaths from Covid-19 continues to increase in some hot spot countries, according to Johns Hopkins University. California Governor Gavin Newsom has ordered some indoor businesses – including restaurants, bars, cinemas, and museums – to close all over the country as more and more cases arise.
The mood on Wall Street also got a boost when Pepsico reported better-than-expected earnings on Monday.
Bank profits start on Tuesday with Citigroup, JPMorgan Chase and Wells Fargo, all of whom will report before the opening bell.
While corporate earnings are expected to decline 44% in the second quarter, the financial sector’s refinitive predicts a more than 52% drop in earnings.
“What is so influential about the banks that report at the beginning of the winning season in times like these is that we really count on what the banks’ management team thinks, what’s going on,” added Schmidt. “Banks are the foundation of our US economy. They are there to lend to small businesses and manage retail deposits.”
Delta Air Lines and Fastenal also report on the quarterly results on Tuesday.
The Consumer Price Index (CPI), a key indicator of inflation trends, will be released by the Ministry of Labor on Tuesday at 8:30 a.m. Economists surveyed by Dow Jones estimate that US consumer prices rose 0.5% in June, according to economists surveyed by Dow Jones.
Subscribe to something CNBC PRO for exclusive insights and analyzes as well as live business day programs from all over the world.