Stock futures are trading flat after indices hit record highs

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US equity futures close to the flat line on Monday night after a record session, with the prospect of strong earnings results helping fuel a rise to all-time highs for major stock indexes.

Each of the S&P 500, Dow and Nasdaq indices ended the session at record closing levels. The financial sector outperformed, with the big banks set to be the first big companies to release second quarter results, with reports from JPMorgan Chase (JPM) and Goldman Sachs (GS) on the bridge on Tuesday morning. Both stocks ended Monday’s session higher and were among the best performers in the Dow Jones.

Profits for the S&P 500 as a whole are expected to rise 64% for the second quarter, which would mark the fastest increase since the fourth quarter of 2009, according to FactSet data. Bank profits in particular are expected to show strength, supported by a wave of reopenings in the April-June quarter and a stock market trading at record highs. The pace of growth for the second half of the year will be closely watched in business forecasts, given the potential for growth to moderate after an initial push to reopen. And with rising input costs and labor shortages still weighing on the economy, margins across all sectors will also be the center of attention.

“If this idea happens and inflation goes up, it’s actually a really good thing for your banks,” Wealth Management Advisor Courtney Dominguez Payne Capital Management told Yahoo Finance. “So I think that can be a really good way to play in the future, where you want to look at companies that are going to benefit from the interest rate hike or that just have some pricing power here, who ‘they are able to increase their profitability for their consumers and continue to make money in the future. ”

Investors are also poised for an update on the inflation front in the Labor Department’s Consumer Price Index (CPI) on Tuesday morning. The broadest measure of consumer prices is expected. up 0.5% in June from May, slowing slightly from the 0.6% month-over-month increase in May. Excluding the more volatile food and energy prices, consumer prices likely rose 0.4%, also slowing from May’s 0.7% rise. However, over the past year, the rebound from the pandemic lows of 2020 will still be glaring, with consumer prices set to rise 4.0% for the biggest jump in nearly three decades.

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6:05 p.m. ET Monday: Stock futures hover near all-time highs

Here’s where the markets were trading on Monday night:

  • S&P 500 Futures Contracts (ES = F): 4,376.50, unchanged

  • Dow Futures (YM = F): 34,887.00, +12 points (+ 0.03%)

  • Nasdaq Futures (NQ = F): 14,877.5, +8.25 points (+ 0.06%)

Trader Peter Tuchman, left, and Benjamin Tuchman, father and son, work on the trading floor of the New York Stock Exchange on Monday, July 12, 2021. Stocks hover between small gains and losses at the start of Wall Street Monday as what investors expect a wave of corporate earnings reports from the US coming out this week. (AP Photo / Richard Drew)

Trader Peter Tuchman, left, and Benjamin Tuchman, father and son, work on the trading floor of the New York Stock Exchange on Monday, July 12, 2021. Stocks hover between small gains and losses at the start of Wall Street Monday as what investors expect a wave of corporate earnings reports from the US coming out this week. (AP Photo / Richard Drew)

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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck



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