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US stock futures flat as a decline in oil prices trims profit enthusiasm



(Reuters) – US stock exchange futures traded on Monday, as a strong report by Bank of America reinforced expectations for a strong earnings period, but a decline in crude oil prices limited some early gains.

PHILOTO: Traders works on the floor of the New York Stock Exchange (NYSE) in New York, USA on July 6, 201
8. REUTERS / Brendan McDermid

Shares of the Bank of America ( BAC.N ) 0.9 percent in premarket trading after the second largest US lender's quarterly profit analyst, increased expectations of lower costs and growth in loans and deposits.

This follows the earnings statements of three of their Wall Street companions on Friday, which broke down the bank stock but could not stop the S & P 500. SPX from closing the highest level in more than five months.

The markets have expected a strong result for the second quarter, which for S & P 500 companies is expected to have risen by 21 percent, according to Thomson Reuters I / B / E / S.

Of the 27 S & P 500 companies that have reported earnings until Friday, 85.2 percent have increased earnings expectations.

Most of the profit growth is expected to be from energy companies. However, their stocks were released at a lower start on Monday after oil prices fell in terms of supply disruptions, Libya ports resumed and trade review increased potential supply from Russia and other oil producers. Exxon ( XOM.N ) fell 0.7 percent and Chevron ( CVX.N ) dropped 0.8 percent, the largest decliners of Dow components in premarket trading.

At 7:31 AM, Dow e-minis 1YMc1 was 6 points or 0.02 percent. The S & P 500 e-minis ESc1 was down 1.5 points or 0.05 percent and the Nasdaq 100 e-minis NQc1 was unchanged.

At the macro front, data at 8.30 and ET is expected to increase by 0.5 percent in June after an increase of 0.8 percent in May. Excluding auton sales were likely to increase 0.4 percent.

Investors will also focus on the Summit of US President Donald Trump and Russia's Vladimir Putin, where they are expected to discuss the prospect of extending a nuclear weapon convention and the war in Syria.

The Kremlin said it did not expect much from the meeting, but hoped it would be a "first step" to resolve a crisis in the band.

"Russia and the United States meeting is important because the US's relationship with its European allies is already very low," said Naeem Aslam, chief market analyst at Think Markets.

"If Trump and Putin's relationship is further enhanced, it would lead to more friction between the United States and the European Union."

Among the stocks, Arconic ( ARNC.N ) jumped 12.4 percent after broker Jefferies initiated coverage with a "buy" rating.

Netflix ( NFLX.O ) increased by 0.2 percent before the income statement, which is expected after the markets closed. Amazon.com ( AMZN.O ) also received 0.2 percent as its "Prime Day" shopping event turned off.

Reporting by Amy Caren Daniel in Bengaluru


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