Dow fell from a record high; Q2 earnings season kicks off

On Monday, Dow Jones Industrial Average futures fell after the measure closed out the prior week at a record. According to the latest data, the second-quarter earnings season kicks off on Wall Street. Meanwhile, big banks will start reporting results on Tuesday.

Dow Jones futures declined by 0.4%, which equals 139 points. Additionally, S&P 500 futures dropped 0.15%, while Nasdaq 100 futures boosted by 0.31%.

The 10-year Treasury yield dipped by 1 basis point to 1.346%, continuing its declines from last week.

Although the market was expecting strong earnings reports this week, Bank shares dropped as yields fell. JPMorgan and Bank of America were both lower.

Meanwhile, other shares tied to the economic recovery fell, with Boeing and Carnival Corp. lower. The tech giants’ stocks increased in premarket trading. Tesla, Facebook, and Apple both boosted.

Virgin Galactic shares surged more than 3% after its founder Richard Branson made history by reaching space on Sunday in the company’s VSS Unity spacecraft.

Furthermore, the three major indexes closed at all-time highs on Friday after a sell-off Thursday. A sell-off occurred as investors were concerned about a potential slowdown in U.S. economic growth.

Friday’s rally brought the averages into the green for the week; the Dow Jones Industrial Average increased by 0.24% week-to-date, while both the S&P 500 and Nasdaq climbed about 0.4% in the same period.

Investors are waiting for important data, including key readings on inflation

Financial names recovered, with Bank of America and Goldman Sachs surging by more than 3%. Travel-related stocks also grew; Royal Caribbean rose 3.6%, Wynn Resorts rose close to 2%, and American Airlines and United Airlines both surged by more than 2%.

The expectations of the quarterly earnings report pushed the major averages to all-time highs. S&P 500 companies’ profits are anticipated to be up 65% from the same quarter a year ago. The anticipated surge in profits would be the strongest earnings rise since the Q4 of 2009, as stocks rebounded from the financial crisis.

Besides, JPMorgan Chase, Goldman Sachs, and PepsiCo kick off earnings season with results due out before the bell on July 13. Additionally, Bank of America, Citigroup, Wells Fargo, Delta Air Lines, and BlackRock will report results on July 14. Morgan Stanley, Truist, and UnitedHealth are likely to post results on July 15.

Investors are waiting for important data this week, including key readings on inflation on Tuesday and Wednesday. Meanwhile, June retail sales are scheduled for Friday.