Traders work on the floor of the New York Stock Exchange.
Dow Jones Industrial average futures declined after the measure closed out the prior week at a record. Second-quarter earnings season kicks off on Wall Street this week with big banks set to start reporting results Tuesday.
Futures on the Dow shed 104 points, or 0.3% and S&P 500 futures fell 0.13%. Nasdaq 100 futures bucked the trend and gained 0.24%.
The 10-year Treasury yield dipped slightly to to 1.348%, continuing its losses from last week.
Virgin Galactic shares jumped more than 5% after its founder Richard Branson made history by reaching space on Sunday in the company’s VSS Unity spacecraft.
The three major indexes closed at record highs on Friday after a sell-off Thursday as investors worried about a potential slowdown in U.S. economic growth.
Friday’s rally brought the averages into the green for the week; the Dow added 0.24% week-to-date, while the S&P 500 and Nasdaq each rose about 0.4% in the same period.
Stocks tied to the economic recovery that fell during Thursday’s session logged gains on Friday. Financial names rebounded, with Bank of America and Goldman Sachs both jumping more than 3%. Travel-related stocks also rose; Royal Caribbean popped 3.6%, Wynn Resorts gained close to 2%, and American Airlines and United Airlines both added more than 2%.
The major averages’ record highs come ahead of the start of quarterly earnings reports. S&P 500 companies’ profits are expected to be up 65% from the same quarter a year ago, according to Refinitiv, bouncing back from the worst of the pandemic. The expected surge in profits would be the strongest earnings growth since the fourth quarter of 2009, as stocks recovered from the financial crisis.
“Continued earnings momentum should refuel investors’ confidence in the recovery amid slowdown concerns and drive a rotation back into Value,” Bank of America’s Savita Subramanian said in a note Sunday.
JPMorgan Chase, Goldman Sachs and PepsiCo kick off earnings season with results due out before the bell on Tuesday. Bank of America, Citigroup, Wells Fargo, Delta Air Lines and BlackRock report on Wednesday, and Morgan Stanley, Truist and UnitedHealth post results on Thursday.
Investors also anticipate important data to be released this week, including key readings on inflation on Tuesday and Wednesday, and June retail sales on Friday.