U.S. stock futures slipped Tuesday ahead of the start of earnings season with several large U.S. banks giving updates.
Futures tied to the S&P 500 edged down 0.3%, suggesting stocks could come under pressure after the opening bell. A rally in megacap tech stocks led the broad market index on Monday to its second-highest close in history. Futures linked to the Nasdaq-100 ticked up 0.5%
Uncertainty about a second wave of coronavirus infections and the extent to which governments may have to renew restrictions to control the spread are weighing on investors’ minds as the third-quarter earnings season kicks off on Tuesday.
“Earnings season will create a lot of volatility, especially ahead of the election,” said Ludovic Subran, chief economist at Allianz. “The market focus will remain on financial and tech earnings: this will be a main driver.”
BlackRock shares added 4.6% premarket after it reported third-quarter profit that was above expectations and revenue that rose above forecasts. JPMorgan Chase shares gained 1.4% after it posted earnings per share above expectations, but also said it would extend the suspension on stock repurchases at least through the end of the fourth quarter. Shares of Citigroup rose 1.4% after the bank reported earnings per share well above estimates, although profit still declined 34% from the same period last year.