US pre-open: Futures mixed as markets await CPI reading, digest bank earnings

(Sharecast News) - Wall Street futures were mixed ahead of the opening bell on Tuesday after a weak prior session, with traders balancing rising US-Iran tensions against upcoming inflation data and a fresh round of earnings. As of 1230 BST, Dow Jones and S&P 500 futures had the indices opening 0.30% and 0.09% softer, respectively, while Nasdaq-100 futures were up 0.43%.

The Dow closed 138.37 points lower on Monday, almost reversing gains recorded in the previous session, after Donald Trump said he was reinstating what he described as a blockade on Iranian shipping through the Strait of Hormuz, sending oil prices sharply higher.

Tuesday's primary focus will be June's consumer price index, due out at 1330 BST, with CPI expected to show a softer headline print on lower energy costs. However, the predicted 0.2% month‑on‑month rise in core inflation will likely do little to shift hawkish Federal Reserve pricing. Markets currently assign roughly a 50% chance of a rate hike at July's FOMC meeting, with about 43bps of tightening priced in by year‑end. Fed governor Christopher Waller warned on Monday that a further increase may be needed if core inflation fails to ease.

Bank earnings were also firmly in focus early on Tuesday, with Bank of America posting a 15% rise in revenue, net of interest expense, to about $31.7bn in the second quarter, with growth driven by stronger net interest income and a sharp increase in investment‑banking fees. Earnings per share came in at $1.21, ahead of the $1.13 expected, while revenue also topped forecasts of $30.72bn.

JPMorgan Chase delivered a standout performance in equities trading, with revenue surging 86% to $6bn, beating expectations by $2.11bn. Fixed‑income trading rose 6% to $6.1bn, just shy of the $6.22bn StreetAccount estimate. Earnings per share were $6.14, excluding significant items, while revenue totalled $58.02bn, well above the $50.19bn expected.

Wells Fargo reported second‑quarter earnings that came in ahead of expectations, with earnings per share of $2.00 versus $1.72 forecast and revenues that rose to $22.62bn, compared with expectations of $21.84bn.

Goldman Sachs and Citigroup were also scheduled to report earnings before the open.

Elsewhere on the macro front, the National Federation of Independent Business' small business optimism index rose to 97.4 in June, its highest level in four months, up from 95.3 in May and above expectations of 95.8. June's increase reflected stronger expectations for improved business conditions and higher real sales. However, inflation remained the most‑cited problem, with 21% of respondents identifying it as their biggest challenge - a three‑point rise on the month and the highest reading since October 2024.

Still to come, Federal Reserve chairman Kevin Warsh will head to Capitol Hill to deliver testimony at 1500 BST.













Reporting by Iain Gilbert at Sharecast.com