Futures mixed ahead of earnings from big banks, inflation data

[July 13, 2021]  By Devik Jain

(Reuters) - U.S. stock index futures traded mixed on Tuesday, as investors awaited earnings updates from big banks and a reading on inflation data for early clues on the health of the domestic economy.

JPMorgan Chase & Co and Goldman Sachs Group Inc fell 0.4% and 0.1%, respectively, in premarket trading, and were set to kickoff the second-quarter earning season.

June-quarter earnings per share for S&P 500 companies is expected to rise 66%, according to Refinitiv data, with market participants questioning how long Wall Street's rally would last after a nearly 17% rise in the benchmark index so far this year.

Consumer price index data is due at 08:30 a.m. ET and is expected to ease in June after jumping 5% on a year-over-year basis in May.

Inflation and positive economic data have dictated Wall Street's movement since mid June as investors fear an overheating economy amid faster reopening could force the Federal Reserve to pare back its ultra-loose monetary policies sooner-than expected.
 

"The broad markets are settling back and awaiting US inflation, US bank earnings... We view the environment as one of gestation as earnings comes in before the risk taking trend starts again, though a higher inflation print could create a temporary setback," said Sebastien Galy, senior macro strategist at Nordea Asset Management.

The New York Stock Exchange is pictured in the Manhattan borough of New York City, New York, U.S., April 16, 2021. REUTERS/Carlo Allegri/File Photo

Still, the major U.S. stocks indexes notched record closing highs on Monday, helped by a rally in financials and tech-heavy growth names. Including Tesla Inc and FAANG group of companies.

At 6:21 a.m. ET, Dow e-minis were down 18 points, or 0.05%, S&P 500 e-minis were up 1.25 points, or 0.03%.

Nasdaq 100 e-minis were up 51 points, or 0.34%, supported by a rise in shares of Netflix Inc, Amazon.com, Microsoft Corp, Facebook Inc and Google owner Alphabet Inc.

PepsiCo Inc gained 2% after raising its full-year earnings forecast, betting on accelerating demand for its sodas in theaters, restaurants and stadiums as COVID-19 restrictions continue easing.

Boeing Co fell 0.8% after the Federal Aviation Administration (FAA) said late on Monday some undelivered 787 Dreamliners have a new manufacturing quality issue.

(Reporting by Devik Jain in Bengaluru; Editing by Arun Koyyur)

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