U.S. stock index futures pointed to a slightly higher open on Monday as the corporate earnings season was set to kick off.
Around 7:10 a.m. ET, Dow Jones Industrial Average futures indicated a gain of 44 points at the open. S&P 500 and Nasdaq 100 futures also pointed to modest gains.
Citigroup is scheduled to release its second-quarter results later on Monday morning. Other big banks like J.P. Morgan Chase, Morgan Stanley, Bank of America and Goldman Sachs are expected to report quarterly earnings later this week.
The outlook for this earnings season is bleak. Analysts expect S&P 500 earnings to have fallen by 3% in the second quarter, according to FactSet data.
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Monday’s moves come after the major indexes reached record highs last week as Federal Reserve Chair Jerome Powell indicated during congressional testimony that an interest-rate cut could be on the horizon from the central bank. The Dow closed above 27,000 for the first time on Thursday and Friday’s gain brought its increase on the week to 1.5%.
Meanwhile, China’s economic growth slowed to 6.2% in the second-quarter from a year earlier, its weakest pace in at least 27 years, as the trade war with the U.S. took its toll. Still, China’s gross domestic product growth was in line with expectations, and data for industrial production, retail sales, and fixed-asset investment came in above analyst expectations.
President Donald Trump commented on the Chinese economic data, tweeting that the slowdown in economic growth is “why China wants to make a deal.”
Investors stateside will have an eye on developments in the U.S.-China trade war after Reuters reported on Sunday that the U.S. may approve licenses for companies to restart new sales to Chinese telecommunications giant Huawei within two weeks. The Wall Street Journal reported that Huawei is planning extensive layoffs in the U.S. amid the struggle with its blacklisting.
Source: cnbc.com | Original Link