Dow futures slip as earnings season kicks off, J&J pauses coronavirus vaccine trial


U.S. stocks early Tuesday were pointing to a mixed start to trade as investors were parsing corporate earnings from some of the biggest financial institutions in the nation, commencing the unofficial start to third-quarter earnings season.

Wall Street participants also were processing a number of big events, including the start of Amazon’s two-day Prime Day sales event and Apple’s rollout of its latest iPhone lineup.

How are stock benchmarks performing?

Futures for the Dow Jones Industrial Average
YM00,
-0.32%

YMZ20,
-0.32%
were trading off 93 points, or 0.3%, at 28,705, those for the S&P 500
ES00,
-0.05%

ESZ20,
-0.05%
were down 1.05 points, or less than 0.1%, at 3,531.75, while Nasdaq-100 futures
NQ00,
+0.90%

NQZ20,
+0.90%
gained 115.75 points to reach 12,214, a rise of 1%.

On Monday, the Dow
DJIA,
+0.87%
rose 250.62 points, or 0.9%, to 28,837.52. The S&P 500
SPX,
+1.64%
added 57.09 points, or 1.6%, to 3,534.22 while the Nasdaq Composite
COMP,
+2.55%
 climbed 296.32 points, or 2.6%, to 11,876.26. It was the fourth straight day of gains for all three benchmark indexes.

What’s driving the market?

Investors were digesting a number of major corporate events that were likely to set the tone for the trading session on Tuesday, including results from JPMorgan Chase
JPM,
+1.22%,
which produced better-than-expected earnings but delivered slightly weaker-than-expected revenues.

The nation’s largest bank said Tuesday it had net income of $$9.443 billion, or $2.92 a share in the third quarter, compared with $9.080 billion, or $2.68 a share, in the year-earlier period. However, revenue fell to $29.941 billion from $30.014 billion.

Chief Executive Officer of the bank Jamie Dimon said that the bank maintained its credit reserves amid the COVID-19 pandemic to guard against a number of potential outcomes, as the epidemic hobbles parts of the U.S. economy. That said, the bank said it set aside $611 million for potential loan losses, which were less than expected.

Meanwhile, BlackRock Inc.
BLK,
+0.54%
said that its quarterly profit rose by 22% as investors flocked to its suite of investment funds amid a volatile period, but a mostly dramatic rise, in equity markets.

The report from the financial industry comes as Johnson & Johnson
JNJ,
+0.57%
announced a pause of all of its COVID-19 vaccine trials, highlighting the challenges of producing a cure for the deadly infection that has infected more than 37 million people globally so far, according to data aggregated by Johns Hopkins University.

Beyond earnings, the kick off Amazon.com‘s
AMZN,
+4.75%
two-day sales event and the presumed launch of Apple Inc.’s
AAPL,
+6.35%
new iPhone roster of 5-G enabled phones is expected to draw attention, as investors assess how consumers respond to major tentpole events in the era of a pandemic that has weakened segments of the economy.

Stalled talks around another package of coronavirus assistance were still on the mind of the market, and come against the backdrop of reports of the smallest increase in new coronavirus infections in a week in the U.S.

Still, hospitals in some parts of the country are seeing rise in the number of coronavirus patients as we head into the flu season. U.S. hospitalizations are at the highest level since Sept. 2, according to data from the COVID Tracking Project, the Wall Street Journal reported.

Looking ahead, traders are also awaiting the latest inflation data, the consumer-price index, due out at 8:30 a.m. Eastern Time.

Which stocks are in focus?

  • Shares of JPMorgan Chase rose nearly 2% in premarket action after its announced its third-quarter results.

  • Walt Disney Co. shares
    DIS,
    -0.00%
    jumped Tuesday after the entertainment giant late Monday announced a strategic reorganization of its media and entertainment businesses to focus on streaming.

  • Amazon.com shares were up more than 1.4% as the company is expected to generate some $10 billion in sales from its Prime Day sales event, experts say.

  • Shares of J&J were down 1.7% before the bell on Tuesday after the company announced the pause of its COVID-19 trial.

  • BlackRock‘s stock popped nearly 5% in premarket action after its results.



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