Fresh bank earnings ahead, Fed's Waller to speak - what's moving markets
Investing.com -- U.S. stock futures slip, as markets on Wall Street prepare to reopen after a holiday on Monday. Earnings from Goldman Sachs and Morgan Stanley will be in focus, along with a speech from Federal Reserve Governor Christopher Waller. Elsewhere, Elon Musk calls for a greater stake in Tesla (NASDAQ:TSLA), saying he would prefer to build products outside the electric carmaker if his holdings are not increased.
1. U.S. stock futures lower
U.S. stock futures pointed into the red on Tuesday, with investors preparing for a fresh batch of results from major banks.
By 05:29 ET (10:29 GMT), the Dow futures contract had edged down by 185 points or 0.5%, S&P 500 futures shed 31 points or 0.6%, and Nasdaq 100 futures had shed 127 points or 0.7%.
The main U.S. averages were closed on Monday for the Martin Luther King Jr. holiday.
Traders will likely be keeping tabs on corporate earnings, which will include quarterly figures from large lenders Goldman Sachs and Morgan Stanley. Both companies rely on their investment banking divisions, meaning much attention will likely be paid to how these operations fared during the final months of 2023.
Last week, Wall Street giant JPMorgan said it had a «robust» pipeline for its investment banking unit thanks to hopes for imminent interest rate cuts by the Federal Reserve, which fueled a broader market rally late last year. Signs of life in recently dormant mergers and acquisitions activity also emerged as industry-wide deal volumes jumped by 19%, according to Dealogic numbers cited by Reuters. Investment banking fees at JPMorgan surged by 13% in the fourth quarter, while fixed income markets revenue increased by 8%.
2. Fed's Waller to speak
Traders will also be focusing on a speech
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