US stock futures retreated on Tuesday, with investors still focused on the path of interest rates as they braced for more big bank results after a lackluster start to earnings season.
Dow Jones Industrial Average (^DJI) futures dropped 0.4%, while S&P 500 (^GSPC) futures shed 0.5%. Futures on the tech-heavy Nasdaq 100 (^NDX) led the declines, down roughly 0.7%.
All three major indexes closed Friday with weekly wins, and investors are looking to quarterly results from the financial sector and upcoming retail data to keep the momentum going, after a bumpy start to 2024.
Goldman Sachs (GS) and Morgan Stanley (MS) get earnings season going again after Monday’s holiday shutdown. After Friday’s results from Bank of America (BAC), and Wells Fargo (WFC) failed to spark enthusiasm, eyes are on what the fresh reports show after challenging year for their dealmaking business.
Investors are counting down to Wednesday’s retail sales report, as they track each release that could influence the Federal Reserve’s data-driven policy thinking. Last week’s surprise cooling in US wholesale inflation nudged up hopes for an interest-rate cut in March.
Focus will likely turn to Fed Governor Chris Waller’s comments due later Tuesday for more clues, after Atlanta Fed chief Raphael Bostic and a top IMF official warned it’s too early to declare victory on inflation.
In corporates, Tesla (TSLA) shares slipped after its CEO Elon Musk said that unless he has roughly 25% voting control at the EV maker, he’d prefer to build artificial intelligence and robotics products elsewhere.
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