The
largest U.S. lender rose about 2% in premarket trading as it
posted a smaller-than-expected 51% drop in second-quarter profit
and set aside $10.5 billion to cover potential bad loans.
"The numbers were better than what people were afraid of.
They're making money in a difficult environment and it shows
what good management and a strong balance sheet can do," said
Christopher Grisanti, chief equity strategist at MAI Capital
Management in Cleveland, Ohio.
Citigroup Inc rose 1.6% despite reporting a plunge in quarterly
profit and setting aside billions for potential loan defaults.
Wells Fargo & Co, on the other hand, fell 3% after it reported a
quarterly net loss.
Goldman Sachs Group Inc, Morgan Stanley and Bank of America Corp
which report later this week rose between 1.4% and 2.6%.
Investors are bracing for what could be the sharpest drop in
quarterly earnings for S&P 500 firms since the 2008 financial
crisis, according to Refinitiv IBES data.
"Expectations are so low that there's a good chance there will
be a decent set of earnings reports over the next two or three
weeks," said Grisanti.
An upbeat second-quarter report by PepsiCo Inc lifted Wall
Street early on Monday, but the S&P 500 and Nasdaq ended the
session lower on new coronavirus restrictions in California and
a resurgence in U.S.-China tensions.
The United States on Monday rejected China's disputed claims to
offshore resources in most of the South China Sea. The Trump
administration also plans to scrap a 2013 auditing agreement
that could foreshadow a broader crackdown on U.S.-listed Chinese
firms.
At 7:38 a.m. ET, Dow e-minis were up 153 points, or 0.59%. S&P
500 e-minis were up 12.75 points, or 0.4% and Nasdaq 100 e-minis
were up 40.75 points, or 0.38%.
Delta Air Lines edged lower as it warned it will be more than
two years before the industry sees a sustainable recovery from
the "staggering" impact of the coronavirus pandemic, with demand
largely tracking the curve of infections in different places.
Investors will also keep an eye on the Labor Department's
consumer price index (CPI) data for June, expected at 8:30 a.m.
ET.
(Reporting by Medha Singh and Devik Jain in Bengaluru; Editing
by Shounak Dasgupta)
[© 2020 Thomson Reuters. All rights
reserved.] Copyright 2020 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
![](column_spacer.png)
|
|