U.S. stocks looked set to drift on Tuesday as investors geared up for a barrage of bank earnings that will shed light on how the world’s largest economy is faring as it exits a period of high interest rates.
Futures for the Dow Jones Industrial Average rose 66 points, or 0.2%, while S&P 500 futures were flat after both indexes hit all-time highs on Monday. Contracts tied to Nasdaq 100 slipped 0.1%, with the tech-heavy gauge trading just short of the record it hit back in July.
Monday was a quiet session, but bank earnings are likely to be the defining story Tuesday with Bank of America, Citigroup, and Goldman Sachs all set to report before the opening bell.
Last week, JPMorgan Chase and Wells Fargo both posted better-than-expected quarterly results, cementing the idea that consumer spending is holding up even though interest rates have been elevated for the past couple of years.
“This calm start to the week gives investors time to reflect before earnings season gets into full swing,” Hargreaves Lansdown analyst Matt Britzman said. “Plenty of key economic data points are on the horizon, including retail sales, jobless claims, and housing market updates.”
Oil prices were plunging after the OPEC cartel slashed its demand outlook for 2024 and 2025, with China’s crude imports down as its economy falters. The Brent international benchmark slipped 3.8% to $74.49 a barrel, and West Texas Intermediate U.S. prices dropped 3.9% to $70.92 a barrel.
Bond yields were largely unchanged, having been closed on Monday due to Columbus Day. The yield on the 10-year U.S. Treasury note was 3.966%, while 2-year notes were yielding 4.083%.