US pre-open: Futures trade higher ahead of earnings heavy week
Wall Street futures had stocks opening firmly in the green ahead of the bell on Monday as market participants braced for a busy week of earnings.
As of 1200 BST, Dow Jones futures were up 0.92%, while S&P 500 and Nasdaq-100 futures had the indices opening 1.02% and 1.21% higher, respectively.
The Dow closed 658.09 points higher on Friday as market participants digested more bank earnings, easily reclaiming losses recorded in the previous session.
Corporate earnings will again by Monday's primary focus, with Bank of America, Goldman Sachs, and Charles Schwab all set to report before the open.
Johnson & Johnson, Netflix, Lockheed Martin, Tesla, United Airlines, Union Pacific, Verizon, and more will update on their most recent quarterly trading performances later in the week.
Also in focus, the spread between two-year and ten-year Treasury notes remained inverted early on Monday, often cited as a sign of a coming recession, with the two-year note yielding 3.149% and the ten-year note yielding 2.954%.
AvaTrade's Naeem Aslam said: "The focus among investors and traders remains on two major factors: firstly, it is the ongoing US earnings season, and a number of US banks, such as Goldman Sachs, will report their earnings today and are likely to drive the price action for the majority of the markets.
"Secondly, traders continue to bet on the Fed's monetary policy after the red hot US inflation data which came out last week."
On the macro front, the NAHB's July housing market index will be published at 1500 BST, while May's net long-term Treasury International Capital numbers will follow at 2100 BST.
Reporting by Iain Gilbert at Sharecast.com