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Bank of America edged up 0.4% in premarket trading, while Morgan
Stanley rose 1.1% ahead of their second-quarter results due
later in the day.
"Investors will be looking at how well these banks benefited
from rising rates," said Ipek Ozkardeskaya, senior analyst at
Swissquote Bank.
Some of the largest U.S. banks, including JPMorgan Chase and
Wells Fargo, said on Friday they got a profit boost from higher
rates, pointing towards a resilient economy.
Regional lenders like Bank of New York Mellon, Charles Schwab
Corp climbed 0.4% and 1.9%, respectively, ahead of their
reports.
The S&P 500 banks index has fallen 5.2% so far this year,
underperforming the S&P 500 index 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.
Lockheed Martin inched 0.9% up in thin trading ahead of its
results, where the weapons maker is expected to post a rise in
second-quarter profit as geopolitical tensions fuel strong
demand for defense equipment.
Overall earnings across industries are expected to decline 8.1%
for the quarter, according to Refinitiv data.
At 05:03 a.m. ET, Dow e-minis were up 1 point, or 0%, S&P 500
e-minis were down 1.25 points, or 0.03%, and Nasdaq 100 e-minis
were down 14.75 points, or 0.09%.
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.
Investors are 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.
Pinterest gained 3.4% as Evercore ISI upgraded its rating on the
stock to "outperform."
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by
Nivedita Bhattacharjee)
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