© Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 12, 2023. REUTERS/Brendan McDermid/File Photo
(Reuters) – U.S. stock index futures were subdued on Monday after last week’s gains, as investors geared up for quarterly results from industry heavyweights through the week.
Second-quarter earnings are gathering momentum, with Tesla (NASDAQ:) due to report on Wednesday, while Bank of America (NYSE:), Morgan Stanley (NYSE:), Goldman Sachs (NYSE:) and Netflix (NASDAQ:) are also lined up through the rest of the week.
Of the 30 companies in the that have reported earnings as of Friday, 80% beat analyst expectations, according to Refinitiv data.
At 05:00 a.m. ET, were down 50 points, or 0.14%, were down 1.75 points, or 0.04%, and were up 16.25 points, or 0.1%.
The three major U.S. indexes ended last week over 2% higher 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.
On Friday JPMorgan Chase (NYSE:), Wells Fargo (NYSE:) and Citigroup (NYSE:) showed big U.S. banks got a profit boost from higher rates and painted a picture of a resilient economy, with sparks of hope in some businesses like deal-making that have been in the dumps of late.
The strong opening rally in lenders, however, quickly fizzled out with most financials ending the session lower as investors feared things were as good as they would get for a while.
“While US stocks have done extremely well in the first half of 2023, companies are going to have to pull a rabbit out of the hat if they are to sustain this momentum,” said Danni Hewson, head of financial analysis at AJ Bell.
In trading before the bell, Tesla gained 1.6% after company said on Sunday it had built its first Cybertruck, after two years of delays.
Activision Blizzard (NASDAQ:) rose 4.5% after Microsoft (NASDAQ:) said it has signed an agreement to keep Call of Duty on PlayStation following its acquisition.
Also helping the stock, a U.S. appeals court on Friday rejected the Federal Trade Commission’s request to pause Microsoft’s $69 billion purchase.
Lackluster Chinese economic data weighed on investors’ minds on Monday as the world’s second largest economy grew at a frail pace in the second quarter.
