US pre-open: Dow futures flat ahead of bank earnings

By Iain Gilbert

Date: Tuesday 14 Jan 2020

US pre-open: Dow futures flat ahead of bank earnings

(Sharecast News) - US futures were pointing to a flat open for the Dow Jones on Tuesday ahead of a slew of earnings from some of the country's biggest lenders.
As of 1220 GMT, Dow futures were down 0.01%, while S&P500 and Nasdaq-100 futures had the indices opening 0.09% and 0.18% lower, respectively.

The Dow closed 83.28 points higher on Monday as market participants cheered news that the US would be removing China from a list of currency manipulators ahead of the pair's "phase one" trade deal being signed later in the week.

The focus for Tuesday will primarily be on results from the likes of Citigroup, JP Morgan Chase and Wells Fargo as earnings season official kicks off yet again.

Trade will also remain in focus as the US and China's interim deal was expected to be signed tomorrow.

Oanda's Craig Erlam said: "Details of the trade deal are starting to emerge but there's still a lot we don't know. What has been leaked looks to heavily favour the US but as ever, the devil will be in the detail. We're also seeing the pre-signing gestures of goodwill, with the US going back on its decision to label China a currency manipulator in August.

"It will be interesting to hear what corporate America thinks of the detail and, thankfully, we won't have to wait very long. Earnings season gets underway today, with JP Morgan, Citigroup and Wells Fargo all reporting. The bar has been successfully and reliably lowered heading into the season and expectations are for a fourth consecutive quarter of negative earnings growth."

On the data front, the National Federation of Independent Business' latest small business optimism index dropped to 102.7 in December from 104.7 a month earlier - short of the 103.1 expected on the Street.

NFIB chief economist William Dunkelberg said: "December marked the end of another banner year for the small business economy, as owners took full advantage of strong consumer spending, and federal tax and regulatory relief.

"2020 is starting out with a solid foundation for continued growth, two-years into the Tax Cuts and Jobs Act that's providing fuel to grow small businesses and their workforce."

Still to come, inflation figures will be released at 1330 GMT.


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