Traders on the floor of the New York Stock Exchange on August 4, 2022.
Source: NYSE
Stock futures were slightly higher in overnight trading on Sunday as investors prepared for a week of major earnings reports.
Dow Jones Industrial Average futures rose 60 points, or 0.2%, S&P 500 futures rose 0.1% and Nasdaq 100 futures rose 0.1%.
Investor attention has now shifted to second-quarter earnings reports, which could spark this year’s market rally to a new record. The blue-chip Dow hit a new all-time high of more than 40,000 points on Friday, leading to a 6.1% gain for 2024. The S&P 500 also set a new record with an 18% gain for 2024, led by technology giants. More than 40 S&P 500 companies are reporting second-quarter earnings this week.
Traders were also closely monitoring developments following the weekend assassination attempt on former President Donald Trump and the possibility that it could spark further political strife in the United States.
“There will likely be no major impact to the market,” Vital Knowledge founder Adam Crisafulli said in a note Sunday. “Trump was already the clear frontrunner and this shooting only solidifies his position.”
The Republican National Convention kicks off in Milwaukee, Wisconsin on Monday, with Trump leading President Joe Biden in national polls ahead of the November election.
The major stock indexes are coming off another strong week as easing inflation fuels expectations of interest rate cuts. The S&P 500 rose 0.9% last week, its fifth consecutive week of gains. The tech-heavy Nasdaq Composite Index rose 0.3% for the same period, its sixth consecutive week of gains. The Dow outperformed on the relative terms last week, rising 1.6% to its highest weekly close since May 10 as investors began to invest in a broader range of stocks beyond just tech stocks.
Earnings season kicked off on Friday with mixed results from several of the biggest U.S. banks. JPMorgan and Citigroup both beat Wall Street expectations on profit and revenue, but a drop in Wells Fargo’s net interest income disappointed investors.
Goldman Sachs is scheduled to report earnings before trading on Monday, while Morgan Stanley and Bank of America are due to report on Tuesday. Johnson & Johnson, United Airlines and Netflix are also due to report earnings this week.
