The Goldman Sachs booth on the floor of the New York Stock Exchange
US stock futures were slightly lower early Tuesday morning after the Dow Jones Industrial Average rose to nearly 35,000 on Monday, before earnings season for banks kicks off in the second quarter, which begins later in the day.
The Dow Jones Industrial Average futures fell just 24 points. S&P 500 futures and Nasdaq 100 futures both traded roughly flat.
In Monday’s 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 close.
Investors are turning their attention to banks as they prepare to release their second quarter results this week, starting with JPMorgan and Goldman Sachs on Tuesday before the opening bell. JPMorgan and Goldman Sachs finished the day 1.4% and 2.3% respectively.
Banks are expected to double this quarter after the sector posted earnings growth of 138% in the first quarter. The S&P 500 will, by and large, have its strongest earnings growth since the fourth quarter of 2009.
“High earnings expectations and any company’s forward guidance will drive markets higher or disappointment can lead to a small pullback in the equity markets,” said Jeff Kilburg, chief investment officer, Sanctuary Wealth. “Eyes will be on the big banks to set the tone for the next profitable weeks.”
Bank of America, Citigroup, Wells Fargo and Morgan Stanley also ended the day higher. They’ll report their earnings later in the week.
Federal Reserve Chairman Jerome Powell is due to appear before Congress Wednesday and Thursday for an update on monetary policy. He has claimed that the Fed’s loose policy will remain intact until further progress is made on its employment and inflation targets.