Traders work on the trading floor of the New York Stock Exchange.
Stock futures opened mostly flat on late Sunday as the earnings season kicks off this week.
Futures on the Dow Jones Industrial Average added 25 points, or 0.07%. S&P 500 futures rose 0.08% and Nasdaq 100 futures rose 0.17%.
The three major indices closed at record highs on Friday after selling off Thursday as investors worried about a possible slowdown in US economic growth. The rally on Friday brought the averages for the week into the green; the Dow is up 0.24% since the beginning of the week, while the S&P 500 and the Nasdaq are each up 0.4% over the same period.
Stocks tied to the economic rebound that fell during Thursday’s session posted gains on Friday. Financial stocks rebounded, with Bank of America and Goldman Sachs both gaining more than 3%. Travel-related stocks also rose; Royal Caribbean was up 3.6%, Wynn Resorts was up nearly 2%, and American Airlines and United Airlines were both up more than 2%.
The record highs of the key averages come before the quarterly earnings reports begin. S&P 500 company profits are expected to increase 65% year over year, according to Refinitiv, as they recover from the worst of the pandemic. The expected jump in earnings would be the strongest earnings growth since the fourth quarter of 2009, when stocks rebounded from the financial crisis.
“The second quarter could be as good as possible for economic growth,” said Callie Bost, senior investment strategist at Ally Invest. “Earnings growth may be slowing, but analysts still expect S&P earnings to grow double-digit over the next two quarters. It is crucial not to lose confidence in the market just because the strongest economic growth may be behind us. “
JPMorgan Chase, Goldman Sachs and PepsiCo kick off the winning season with results released on Tuesday before the bell. Bank of America, Citigroup, Wells Fargo, Delta Air Lines and BlackRock will report on Wednesday, and Morgan Stanley, Truist and UnitedHealth will release the results on Thursday.
Investors also expect key data to be released this week, including key inflation readings on Tuesday and Wednesday and June retail sales on Friday.