US pre-open: Stocks called to open higher ahead of bank earnings
By Iain Gilbert
Date: Tuesday 14 Jul 2020
(Sharecast News) - Wall Street futures had stocks opening higher ahead of the bell on Tuesday ahead of key earnings reports from some of the US' biggest banks.
As of 1200 BST, Dow futures were up 0.30%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.25% and 0.09% firmer, respectively.
The Dow closed just 10.50 points higher on Monday after another record spike in new Covid-19 cases in Florida at the weekend.
Tuesday's main focus will be earnings from Citigroup, JPMorgan Chase and Wells Fargo - all of which are set to report before the opening bell.
Oanda's Craig Erlam said: "Earnings season is upon us and investors are adopting a cautious approach as we await the first reports, with a huge cloud of uncertainty hanging over the season.
"We know it's going to be horrific, with a 44% hit to profits expected, but what we don't know is what this will all mean for the outlook. We're still operating in extremely choppy waters and the conditions are poor, hardly optimal if you're expected to provide a reliable outlook for your business."
Although the Street expects to see corporate profits plunge 44% across the board in the second quarter, the financial sector was forecast to see a decline in profits of more than 52%.
Delta Air Lines, which has been subject to an amount of volatility as a result of the Covid-19 pandemic, will also report earnings on Tuesday, as will Fastenal.
Also in focus were comments from Robert Kaplan, head of the Federal Reserve Bank of Dallas, who expressed concerns overnight in relation to the rising Covid-19 infection rate and stated the Fed may be required to do more should assistance be needed, while rising tensions between the US and China in relation to Beijing's "unlawful" territorial claims in the South China Sea also weighed on sentiment.
In macro news, June inflation figures will be published at 1330 BST, while Fed heads Lael Brainard and James Bullard will deliver speeches at 1900 BST and 1930 BST, respectively.
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