Futures slip as bond yields rise, BofA up on consumer lending strength
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(Reuters) – U.S. equity index futures fell on Monday as Treasury yields continued to rise on expectation of monetary policy tightening, while Bank of America wrapped lenders’ profits from Wall Street with a better than expected quarterly profit.
Bank of America Corp, the second-largest U.S. bank by assets, edged up 1% in premarket transactions after posting strong growth in its consumer finance business.
Market reaction to first-quarter bank earnings was mixed as JPMorgan Chase & Co, Goldman Sachs Group Inc and Citigroup Inc set aside $3.36 billion in loan loss reserves due to risks related to the war in Ukraine and rising inflation.
Overall, analysts are expecting S&P 500 overall annual earnings growth of 6.3% last week, less optimistic than the 7.5% growth expected at the start of the year, according to data. data from Refinitiv.
Companies such as Netflix, Tesla Johnson & Johnson and International Business Machines are expected to report this week.
Most megacap growth stocks fell slightly, with the benchmark 10-year Treasury yield rising to 2.866%, its highest level since December 2018. [US/]
However, Tesla Inc rose 0.8% as the electric carmaker began preparing to reopen its Shanghai factories as the city ramps up efforts to return to normal after a nearly three-week COVID shutdown.
Earlier data showed China’s economy slowed in March despite better-than-expected first-quarter growth figures, worsening an outlook already clouded by COVID-19 restrictions and the war in Ukraine.
There was little hope for peace in Ukraine, with Russia striking hundreds of military targets in Ukraine overnight, destroying command posts with air-launched missiles.
As of 7:06 a.m. ET, Dow e-minis were down 49 points, or 0.14%, S&P 500 e-minis were down 12.25 points, or 0.28%, and e-minis Nasdaq 100 were down 51.25 points, or 0.37%.
Shares of Twitter rose 4.4% after the microblogging platform adopted the ‘poison pill’ on Friday to prevent Tesla CEO Elon Musk from increasing his stake beyond 15% during a one year period.
Didi Global Inc fell 18.7% after the Chinese transportation giant announced it would hold an extraordinary general meeting on May 23 to vote on its U.S. delisting plans.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Arun Koyyur)