S&P 500 futures were slightly lower as investors braced for a big week of first-quarter earnings reports ahead.
S&P 500 futures shed 0.3% on Sunday evening. Nasdaq futures were lower by 0.6%. Futures on the Dow Jones Industrial average were flat.
Bank of America and Bank of New York Mellon both report Monday before the bell. Several Dow blue chips report earnings this week, including IBM, Procter and Gamble, Travelers, Dow Inc, Johnson and Johnson, American Express and Verizon.
And big tech bellwethers also report with Netflix due on Tuesday and Tesla out on Wednesday, both after the bell. Snap reports Thursday. United Airlines, American Airlines and Alaska Air are also on the calendar, as are railroads CSX and Union Pacific.
Earnings season is off to a decent start so far with 77% of S&P 500 companies reporting EPS above expectations, according to FactSet. But it’s still early with just 7% of the benchmark reporting so far. Results will really ramp up in the week ahead and investors will be paying close attention to forward guidance, especially for comments on how companies are handling surging costs. Analysts believe first-quarter earnings will jump 5% for the quarter when it’s all said and done, according to FactSet’s analysis of actual results and future estimates.
Despite some better-than-expected results, investors sold stocks last week on fears higher rates and inflation will darken the outlook for earnings. The S&P 500 fell 2.13% for its second negative week in a row. The Nasdaq Composite lost 2.63%, and the Dow fell 0.8% on the period.
The 10-year Treasury yield touched the highest in three-year last week above 2.83%, which is weighing on stocks.
–With reporting by Patti Domm