Wall St ready for mixed opening as focus shifts to earnings and economic data

A Wall Street sign is visible outside the New York Stock Exchange (NYSE) in New York, New York, United States on June 28, 2021. REUTERS / Andrew Kelly

  • Banks are ahead of their results this week
  • Didi slips on confirmation of removal of applications in China
  • Virgin Galactic boards successful Branson space flight
  • Futures: Dow down 0.37%, S&P down 0.10%, Nasdaq up 0.40%

July 12 (Reuters) – Major Wall Street indices were expected to open mixed on Monday after hitting new highs in the previous session, with investors awaiting the start of the second-quarter earnings season and a slew of economic data.

The three major U.S. stock indexes hit record closing highs on Friday as financials and other economy-focused sectors rebounded after a sell-off sparked by growth concerns earlier last week.

As of Tuesday, earnings reports are due by JPMorgan Chase (JPM.N), Goldman Sachs (GS.N), Bank of America (BAC.N) and other major banks, with market participants in the search for early clues on the economy and actions linked to growth. Read more

Shares of major lenders fell between 0.5% and 0.6% in pre-market trading.

Second-quarter profits of S&P 500 companies are expected to rise 65.8%, according to IBES data from Refinitiv.

“Great results are already in the market,” said Thomas Hayes, president of Great Hill Capital LLC in New York.

“The name of the game is direction… we need to see what management has to say about their outlook to support current valuations and beyond.”

Emphasis will also be placed on a bunch of economic reports, including US inflation data and retail sales later in the week, while watching testimony from Federal Reserve Chairman Jerome Powell, in front of Congress on Wednesday and Thursday to hear his take on inflation and the timing of the reduction.

Wall Street has been driven by concerns over rising inflation and the spread of the Delta coronavirus variant in recent sessions, with investors swinging between economy-linked value stocks and high-growth names technological.

“Inflation data is likely to rekindle some near-term concerns about how the economy will evolve,” said Art Hogan, chief market strategist at National Securities in New York.

“The CPI (consumer price index) and the PPI (producer price index) exceeding estimates will bring this tug of war between growth and inflation.”

As of 8:36 a.m. ET, Dow e-minis were down 128 points, or 0.37%, and S&P 500 e-minis were down 4.5 points, or 0.1%.

Nasdaq 100 e-minis rose 59.75 points, or 0.4%, while shares of the large group of companies FAANG edged up.

Didi Global Inc (DIDI.N) fell 3.0% after confirming that China’s cyberspace administration informed app stores to remove the rideshare company’s 25 apps and said the move could have a impact on its income in the region. [nL4N2OO25U]

Virgin Galactic Holdings Inc (SPCE.N) jumped 1.7% after the space tourism company successfully completed its first full crew test flight into space with founder Richard Branson aboard his aircraft -Virgin Galactic rocket. Read more

Reporting by Devik Jain and Shreyashi Sanyal in Bengaluru; Editing by Maju Samuel

Our standards: Thomson Reuters Trust Principles.

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