U.S. stock-index futures were treading water Monday, as investors parse earnings from Goldman Sachs Group Inc. and Citigroup Inc., which could provide further guidance about the state of the banking sector and the economic broadly.
How are benchmarks faring?
Dow Jones Industrial Average futures YMM9, +0.05% rose 13 points to 26,419, a gain of less than 0.1%, while S&P 500 futures ESM9, -0.02% were virtually unchanged at 2,912.50. Nasdaq-100 futures were off 3 points, or less than 0.1%, to 7,649.25.
On Friday, the Dow DJIA, +1.03% gained 269.25 points, or 1%, to end at 26,412.30, while the S&P 500 index SPX, +0.66% rose 19.09 points, or 0.7%, to finish at 2,907.41. The Nasdaq Composite Index COMP, +0.46% advanced 36.80 points, or 0.5%, to close at 7,984.16.
The S&P and Nasdaq closed higher for the week, while the Dow logged a slight loss.
What’s driving the market?
Earnings season comes into fuller swing, though the week will be shortened by the Easter holiday, with results Monday from Goldman GS, +2.47% and Citigroup C, +2.29% to be closely watched.
Investors were cheered by quarterly results from Dow component JPMorgan Chase & Co., which kicked off a new earnings season early Friday, that came in better than expected, while Wells Fargo & Co. also posted robust revenue and in-line earnings.
Analysts expect first-quarter earnings numbers for the S&P 500 to suffer the first year-over-year decline in nearly three years, as macroeconomic headwinds continue to pull down estimates from analysts.
On Saturday, global financial policy makers meeting for the International Monetary Fund, said they stood ready to “promptly shore up growth” if needed. While risk forecasts for economic expansion in 2020, remain tilted to the downside, amid concerns centered on trade tensions, policy uncertainty and geopolitical developments.
On the trade front, U.S. Treasury Secretary Steven Mnuchin told reporters over the weekend that the U.S. and China were moving closer to an agreement on trade, with phone discussions between the two countries last week. But he wasn’t sure if more face-to-face meetings would be needed. On Sunday, Reuters reported that the U.S. was watering down demands that China cut down on industrial subsidies as a condition for a trade deal, after encountering strong Chinese opposition.
What stocks are in focus?
Shares of Advanced Disposal Services Inc. ADSW, +1.16% Waste Management Inc. rose 20.9% in premarket trade after Waste Management Inc. WM, +1.21% said it entered into an agreement to buy the rival waste company in a $4.9 billion deal. Waste Management will pay $33.15 a share in cash for Advanced Disposal stock, a 22.1% premium to its Friday closing price.
Shares of Canadian legal cannabis makerAphria Inc. APHA, +2.76% fell 10.9% before bell Monday, the after the Canada-based cannabis company swung to a wide third-quarter loss in the most recent quarter.
Goldman’s shares were up 0.3% in premarket action, after the bank reported first-quarter earnings that were well above expectations, but revenue figures that fell short.
What are the analysts saying?
“Futures are flat following a quiet weekend as markets digest last week’s rally,” Tom Essaye, president of the Sevens Report, wrote in a Monday morning note to clients.
“Expectations of a U.S./China trade deal continue to rise, with some anticipating an announcement this week…But, as a reminder, the market has already priced in a deal, so the real focus of any announcement will be when tariffs are removed, and the sooner, the better.”
What economic data and Fed speakers are ahead?
Investors will get a snapshot of the New York state manufacturing sector, when the Empire State index is released by the New York Fed at 8:30 a.m. Eastern Time.
Chicago Fed President Charles Evans will appear on CNBC at 8:30 a.m. and give a speech at the New York Association of Business Economists at 1 p.m. Evans is a voter on the Fed’s interest-rate setting committee.
At 8 p.m. Boston Fed President Eric Rosengren, also a voter, was set to give a speech at Davidson College in Davidson, N.C.
How are other markets trading?
Stock markets in Asia closed on a mixed note Monday, with Shanghai’s Composite index SHCOMP, -0.34% and Hong Kong’s Hang Seng Index HSI, -0.33% each losing 0.3% on the day. Japan’s Nikkei 225 NIK, +1.37% meanwhile, rose 1.4%. European markets were trading slightly higher, with the Stoxx Europe 600 up 0.1%.
In Commodities markets crude oil futures CLK9, -1.06% fell 1%, while gold GCM9, -0.34% and the U.S. dollar DXY, -0.10% were each lower Monday.
