Futures slip as investors digest more big bank earnings By Reuters

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<span>© Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 12, 2023. REUTERS/Brendan McDermid</span><br />
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<p>By Bansari Mayur Kamdar and Johann M Cherian</p>
<p>(Reuters) -U.S. stock index futures slipped on Tuesday as investors digested more earnings reports from top lenders including <span itemscope="" itemtype="http://schema.org/Corporation"><span itemprop="name"> Morgan Stanley </span></span> (NYSE:) and Bank of America (NYSE:), after the markets rallied last week in anticipation of the results and signs of inflation cooling. </p>
<p>Bank of America rose marginally in premarket trading after the lender posted a 20% surge in second-quarter profit, while Morgan Stanley’s shares pared early gains after the bank’s profit slipped 18%, hurt by a deal-making drought.</p>
<p>“The markets and the sectors have gotten ahead of themselves and probably some digestion of gains is necessary,” said Sam Stovall, chief Investment strategist at CFRA Research, New York.</p>
<p>“Most of the major banks have reported so now the question is what about smaller banks because the smaller banks are more lending focused and as a result of the inverted yield curve, they might not have the kind of net interest income strength.”</p>
<p>Some of the largest U.S. banks, including JPMorgan Chase (NYSE:) and <span itemscope="" itemtype="http://schema.org/Corporation"><span itemprop="name"> Wells Fargo </span></span> (NYSE:), said on Friday they got a profit boost from higher rates, pointing towards a resilient economy.</p>
<p>Bank of New York Mellon (NYSE:) fell 1.2% even as the lender posted upbeat quarterly earnings, while PNC Financial (NYSE:) Services shed 2.9% after it lowered its forecast for full-year net interest income (NII).</p>
<p>The S&amp;P 500 banks index has fallen 5.2% so far this year, underperforming the which has notched a 17.8% gain after the biggest banking crisis since 2008 earlier this year took down three lenders and pummeled the sector.</p>
<p><span itemscope="" itemtype="http://schema.org/Corporation"><span itemprop="name"> Lockheed Martin </span></span> (NYSE:) inched 0.8% up after the weapons maker raised its annual profit and sales outlook on strong demand for military equipment, stoked by ongoing geopolitical uncertainties.</p>
<p>Overall earnings across industries are expected to decline 8.1% for the quarter, according to Refinitiv data.</p>
<p>At 7:42 a.m. ET, were down 18 points, or 0.05%, were down 3.75 points, or 0.08%, and were down 26.25 points, or 0.17%.</p>
<p>Wall Street has rallied since last week after consumer prices and producer prices data provided evidence that the economy had entered a disinflation phase, stoking hopes that the Federal Reserve will soon end its monetary policy tightening.</p>
<p>Investors are also focused on further signs that inflation is cooling, with the readings on U.S. retail sales and industrial production to be released later on Tuesday.</p>
<p>Pinterest (NYSE:) gained 3.3% as Evercore ISI upgraded its rating on the stock to “outperform” and Marvell (NASDAQ:) Technology climbed 1.1% after Bank of America added the chipmaker to its U.S. No.1 list.</p>
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<br /><a href="https://www.investing.com/news/stock-market-news/futures-muted-as-wall-st-awaits-more-big-bank-earnings-3127558">Source link </a></p><p>The post <a href="https://forextraderhub.com/futures-slip-as-investors-digest-more-big-bank-earnings-by-reuters.html">Futures slip as investors digest more big bank earnings By Reuters</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>