Mixed stocks ahead of earnings season; banks in the spotlight | national
The Associated Press
Stocks hovered between small gains and losses early in Monday before a flurry of corporate earnings reports from U.S. companies to be released this week.
The S&P 500 Index was up 0.1% at 10 a.m. EST. The Dow Jones Industrial Average was up 0.2% and the Nasdaq composite was down 0.2%. On Friday, the S&P 500 rose 1.1% to a new high, rebounding from the previous day’s loss.
Profit season kicks off this week. The big Wall Street banks are releasing their results from Tuesday starting with JPMorgan Chase and Goldman Sachs. Bank of America, Citigroup and Wells Fargo will also report this week. A handful of other large companies are reporting this week, including Delta Air Lines, PepsiCo and UnitedHealth Group.
Expectations are high this quarter for publicly traded companies. The pandemic is declining and all of the United States effectively reopened in the last quarter as vaccine availability became widespread. Investors will not only be looking to see what kinds of profits these companies have generated over the past three months, but also what their outlook is now that things are normalizing.
Corporate profits are expected to increase 64% from a year ago, according to FactSet. It would be the strongest year-over-year growth since 2009, when corporate profits began to recover from the Great Recession.