Stock futures are generally stable ahead of bank profits

US equity futures were mostly flat Monday night after the Dow Jones Industrial Average hit nearly 35,000 ahead of the second quarter earnings season for banks, which begins on Tuesday.

Dow Jones Industrial Average futures fell 10 points, or 0.03%. S&P 500 futures fell 0.06% and the Nasdaq 100 fell 0.002%.

During the regular trading session, the Dow Jones rose 126.02 points to close just below 35,000. The S&P 500 and Nasdaq Composite gained 0.3% and 0.2%, respectively, for save fences.

Investors are looking to the banks as they prepare to release their second quarter results this week, starting with JPMorgan and Goldman Sachs on Tuesday before the opening bell. JPMorgan and Goldman Sachs ended the day up 1.4% and 2.3% respectively.

Banks are expected to double this quarter, following the 138% profit growth the industry experienced in the first quarter. Overall, the S&P 500 is expected to generate its strongest earnings growth since the fourth quarter of 2009.

“The high earnings expectations and expectations of every company will push the markets higher or disappointment could create a slight pullback in the stock markets,” said Jeff Kilburg, chief investment officer at Sanctuary Wealth. “All eyes will be on the big banks to set the tone for the next few weeks of earnings.”

Bank of America, Citigroup, Wells Fargo and Morgan Stanley also ended the day higher. They will report their earnings later in the week.

Federal Reserve Chairman Jerome Powell is due to appear before Congress on Wednesday and Thursday to provide an update on monetary policy. He maintained that the Fed’s easy policies will remain intact until there is more progress on its employment and inflation targets.