Traders on the trading floor of the New York Stock Exchange on August 4, 2022.
Source: New York Stock Exchange
Stock futures were higher in overnight trading Sunday as investors braced for a big week of earnings for key companies.
Dow Jones Industrial Average futures rose 93 points, or 0.23%. S&P 500 futures rose 0.26% and Nasdaq 100 futures rose 0.41%.
Investors’ attention is turning to second-quarter earnings, which could be the catalyst for another record high for the market’s rally this year. The blue-chip Dow Jones just hit a record high above 40,000 on Friday, bringing its 2024 gain to 6.1%. Driven by technology giants, the S&P 500 rose 18% in 2024, setting a new record. More than 40 S&P 500 companies reported second-quarter earnings this week.
Traders are also eyeing the latest developments over the weekend regarding the assassination of former President Donald Trump and the possibility that it could lead to more political conflict in the United States
“This probably won’t have much of an impact on the market,” Adam Crisafulli, founder of Vital Knowledge, said in a report on Sunday. “Trump is already the clear front-runner, and the shooting will only solidify that position.”
The Republican National Convention will be held in Milwaukee, Wisconsin on Monday, with Trump leading President Joe Biden in national polls ahead of the November election.
Major equity benchmarks had another strong week as easing inflation data boosted interest rate cut bets. The S&P 500 rose 0.9% last week, its fifth weekly gain in six weeks. The tech-heavy Nasdaq rose 0.3% over the same period, marking its sixth consecutive week of gains. The Dow Jones outperformed relatively last week, rising 1.6% for its best weekly performance since May 10, as investors began to focus on a wider range of stocks, not just technology stocks.
Results from some of the largest U.S. banks, which kicked off earnings season on Friday, were mixed. JPMorgan Chase & Co. and Citigroup Inc. both beat Wall Street estimates for profit and revenue, while Wells Fargo & Co. disappointed investors with a drop in net interest income.
Goldman Sachs will report before the market closes on Monday, while Morgan Stanley and Bank of America will report results on Tuesday. Johnson & Johnson, United Airlines and Netflix are also due to report earnings this week.
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