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U.S. stocks were set for a mixed open as investors await second-quarter earnings reports and stocks are coming off new all-time highs.
Futures on the
dropped 127 points, or 0.4%, while
futures fell 0.2% and
futures advanced 0.2%.
“Futures are slightly lower following a very quiet weekend of news as markets wait for the start of earnings this week,” writes
Tom Essaye,
founder of Sevens Report Research.
Asian stocks climbed on Monday, buoyed by action from China’s central bank as well as a record-setting day on Wall Street, while European stocks paused.
The
gained 2.3% and the
rose 0.7% in the first opportunity for Asian investors to react to the news the People’s Bank of China was cutting reserve requirements for banks by a half-point, unleashing 1 trillion yuan ($150 billion) into the world’s number-two economy. Japan also reported an 8% surge in core machinery orders for May.
The action in European stocks was muted, with aviation sector stocks including
slipping on a report the European Union was set to propose a kerosene fuel tax. The Stoxx Europe 600 edged 0.1% higher.
Asian markets have lagged their rivals in the U.S. and Europe this year. In 2021, the Nikkei 225 has climbed just 4%, the Shanghai Composite has added 2% and the Hang Seng is up 1%. The
by contrast, has surged 16%, and the Stoxx Europe 600 has added 15%.
The focus on Wall Street this week will be fresh inflation data as well as the kickoff of earnings season.
Analysts expect earnings growth of 64% year-over-year for the quarter, according to FactSet. That’s an acceleration from the just over 50% growth seen in the first quarter, as reopenings have been met with trillions of dollars of fiscal stimulus.
(ticker: SPCE) stock gained 5% after the company successfully completed the first space tourism flight over the weekend.
(IVZ) stock gained 1% after getting upgraded to Buy from Neutral at Citigroup.
(CAKE) stock gained 1.9% after getting upgraded to Outperform from Market Perform at Raymond James.
(EAT) stock gained 2% after getting upgraded to Outperform from Market Perform at Raymond James.
(RKT) stock dropped 1.5% after getting downgraded to Hold from Buy at Jefferies.
Write to Jacob Sonenshine at jacob.sonenshine@barrons.com
