Traders on the floor of the New York Stock Exchange are gearing up for a big week of key corporate earnings as stock futures were slightly higher in overnight trading Sunday.
Futures on the Dow Jones Industrial Average rose 0.1%, while S&P 500 futures and Nasdaq 100 futures both added 0.1%. Investor attention is shifting to second-quarter earnings reports, which could be the catalyst to extend the market’s rally to new records this year.
The blue-chip Dow just hit a fresh all-time high above 40,000 on Friday, with gains of 6.1% in 2024. The S&P 500 has jumped 18% this year to a new record, driven by technology giants. More than 40 S&P 500 companies are set to report second-quarter earnings this week.
Traders are also keeping an eye on the latest developments with the attempted assassination of former President Donald Trump over the weekend and its potential impact on political stability in the U.S. However, analysts like Adam Crisafulli believe that this event is unlikely to have a significant impact on the markets.
The Republican National Convention is set to begin in Milwaukee, Wisconsin on Monday, with Trump leading President Joe Biden in national polls ahead of the November election.
Last week, the major equity benchmarks had a solid performance as easing inflation data fueled rate-cut bets. The S&P 500 gained 0.9%, the Nasdaq Composite rose 0.3%, and the Dow outperformed with a 1.6% gain.
Results from some of the U.S. big banks that kicked off the reporting season on Friday were mixed. JPMorgan and Citigroup exceeded Wall Street expectations, while Wells Fargo’s decline in net interest income disappointed investors.
This week, Goldman Sachs, Morgan Stanley, and Bank of America are set to report earnings, along with Johnson & Johnson, United Airlines, and Netflix. Traders will be closely watching these reports for insights into the health of the economy and corporate America.
