Dow closes higher for 12th straight day, registers longest rally since February 2017: Live updates

Stocks closed higher Tuesday, with the Dow Jones Industrial Average notching a 12-day advance.

The Dow rose by roughly 26.83 points, or 0.08%, to 35,438.07. The S&P 500 added 0.28% to 4,567.46. The Nasdaq Composite advanced 0.61% to 14,144.56.

— Sarah Min

Corporate America has been undertaking fewer buybacks of its stock since May, Bank of America equity and quantitative strategist Jill Carey Hall said in a note to clients Tuesday.

“Corporate client buybacks slowed despite typically picking up at this point of results season and have been tracking below seasonal trends since May,” Hall said, adding that buybacks among companies that have reported are down 30% in 2023 compared with the same period last year.

“[B]uybacks could be one of the biggest casualties of tighter credit,” Hall said.

— Scott Schnipper, Michael Bloom

A trio of stocks could be poised for upside over the next six months, following two years of “relatively subdued trading,” according to William Blair.

Analyst Dylan Carden highlighted Boot Barn is coming close to clearing what has been “one of the largest overhangs for the stock: the structural level of store volume.” The analyst has a price target of $130 on the footwear retailer, suggesting upside of more than 40%.

Pet retailer Chewy also made the cut, as the analyst anticipates “upside to net customer adds looking at the balance of this year, and more so into 2024.” The firm has a price target of $50, which reflects upside of 47% from Monday’s close.

Clothing retailer Revolve rounds out the list, “a more speculative call compared to the other two.” The firm sees the stock rising 107% from Monday’s close.

–Darla Mercado  

Edward Jones strategist Angelo Kourkafas said that the market is currently pricing in an earnings “trough” for the second quarter, which means that outlook and guidance from companies could have a larger impact on how stocks trade after their reports.

“Estimates and consensus thinks this is going to be the worst quarterly earnings decline for the cycle, and from that point we’re going to start seeing improvement. … The first half was all driven by multiple expansion, but now, thinking about the second half, earnings will have to pick up the pace,” Kourkafas said.

— Jesse Pound

Warner Music Group stock could return to steady growth in the next 12 months thanks to investments and expansion in emerging markets, according to TD Cowen.

The firm initiated coverage on the stock with an outperform rating on Monday, while analyst Doug Creutz forecasts nearly 25% upside from Monday’s $30.52 close.

“While WMG’s recent revenue growth has lagged peers, we believe this is largely due to a temporary soft period for their pipeline,” Creutz said. “We expect WMG’s growth to return towards industry levels over the next 12 months.”

— Brian Evans

Stocks paying high dividend yields could become “increasingly important” for investors’ portfolios, according to Trivariate Research founder and CEO Adam Parker. 

High-yielding stocks outperformed the market as the dot-com bubble burst and the Federal Reserve cut rates, the former Morgan Stanley chief equity strategist said in a recent note. With the current higher interest rate environment, dividend-yielding assets may become key to portfolio construction, Parker said.

CNBC Pro subscribers can read the full story here.

— Hakyung Kim

Banc of California shares surged 19% in afternoon trading, while PacWest Bancorp shares dropped 22% following deal reports.

A Wall Street Journal report, citing people familiar with the matter, said Banc of California is in advanced talks to buy PacWest following the regional banking crisis earlier this year. Both banks are set to post quarterly results Tuesday, which is when a deal could be formally announced, the report said.

— Sarah Min

Cintas and Costco were both on pace to post their 12th straight day of gains. For Cintas, the streak would be its first going back more than a decade to March 2010. For Costco, it would be its first since June 2019.

Cintas reached a fresh all-time high on Tuesday. In its most recent quarterly results reported July 13, the business services company beat analysts’ expectations on the top and bottom lines. Cintas reported per-share earnings of $3.33 on revenue of $2.28 billion. Analysts polled by FactSet expected earnings of $3.19 per share on revenue of $2.26 billion.

Meanwhile, Costco reached a new 52-week high, trading at levels not seen since April 2022.

Shares of Cintas and Costco were last higher by 1.1% and 0.4%, respectively.

— Sarah Min, Nick Wells

Macquarie Research raised its price target on Microsoft shares to $400 from $325, citing the company’s cloud strength. The new target price implies 17% upside from Monday’s close.

“We expect continued strength in the shares given the company’s combination of growth and earnings, potential upside to our estimates from AI enhancements to Office 365, potential revenue to Bing from AI, and the possibility of a successful ATVI closure,” the firm wrote in a Monday note.

Microsoft is scheduled to report its 2023 fiscal fourth-quarter earnings Tuesday after the bell.

Shares were higher by 1.5% during afternoon trading.

— Hakyung Kim

General Electric — the industrial behemoth whose origins date back to the founding of Edison Electric Light Company in 1878 by Thomas Alva Edison — rose as much as 6.9% on Tuesday following better-than-expected second-quarter earnings.

As a result, GE pulled farther ahead of the tech stocks it has been outperforming so far in 2023.

GE shares are up 72.4% this year compared to 53.8% for Amazon, 49.1% for Apple, 45.7% for the S&P 500 Information Technology Index, 45.5% for Microsoft and 37.8% for Google-parent Alphabet.

“Roughly six months from now, GE will be spinning off its Power/Renewables from its Aerospace unit and today’s Q2 update confirms that both businesses are purring as the split approaches,” analysts at Gordon Haskett wrote early Tuesday. “It looks to us like GE Vernova, which is the name of the power business, is flying into the upcoming separation with momentum. Case in point, Renewable Energy orders in Q2 topped $8bn and sales were up 24%. On the other side of Vernova, margins in ‘Power’ were up 150 bps and orders were up a respectable seven percent. Meanwhile the aerospace business is white-hot right now and when you add it all up, you have a company that has capitalized on an EPS beat by raising its sales, cash flow and EPS outlook for the year.”

— Scott Schnipper, Michael Bloom

UnitedHealth is on pace to finish Tuesday’s session up. If that holds through the close, it will mark the longest daily winning streak since 2021.

Tuesday would mark the eighth straight session of gains for the stock, marking the continuation of a streak that began with its earnings report on July 14. The last time the stock rose for eight straight trading days was in December 2021.

As the largest weight in the 30-member Dow, UnitedHealth’s ascent has also helped boost the index, which has finished the last 11 sessions higher.

— Alex Harring

UFC parent Endeavor should be able to weather the impacts of the dual Hollywood strikes, though it may see near-term revenue challenges, according to Jefferies.

“With <50% of the company’s core agency revenue stemming from TV/Film, we believe the business is diversified enough to navigate this situation,” said analyst Randal Konik in a Tuesday note to clients. “However, we lower our 2Q, 3Q, and FY estimates to better account for the near-term impact of these work stoppages.”

Still, Konik said he’s optimistic on the company’s long-term growth potential. While the strikes pose short-term challenges to Endeavor’s representation business, the broader trend of demand for live events and content can be beneficial for the company in the longer term.

— Alex Harring

Citi is feeling pretty good about payments company Flywire, as the firm anticipates close to 20% upside for shares.

Analyst Ashwin Shirvaikar raised his target price on Flywire to $40 from $35, suggesting shares could rise 19.1% from Monday’s close. He rates the stock a buy, and slightly increased revenue estimates for the second half of 2023 and full-year 2024.

“FLYW remains one of our top FinTech ideas and we expect the track record of strong wins and conversions across end-markets to lead to a solid [net revenue retention],” Shirvaikar wrote in his Monday report.

He’s not alone in feeling upbeat about the stock. More than 90% of the 13 analysts covering Flywire rate it a buy, according to FactSet.

— Darla Mercado

Progressive fell 1.3% after Morgan Stanley downgraded the insurer to underweight from equal weight, and cut its price target, saying risks are not fully priced into the stock.

“The increased severity in personal auto and slowdown in policy in force (PIF) growth are unlikely to dissipate until 2024, and weigh on EPS going forward,” the firm’s Bob Huang wrote on Tuesday.

The analyst’s price target of $114, lowered from $135, is about 8% lower from Monday’s closing price. The stock is already down 5% this year.

— Sarah Min

The broadening market rally still has some areas that lack conviction and could present an investment opportunity, according to Strategas ETF strategist Todd Sohn.

“We do find the recent accelerations from Commodity related ETFs … notable as they are accompanied by hefty outflows and apathetic volumes as well as substantial outflows from Energy sector funds too – if you’re looking for non-Tech exposure, these would hit our ‘contrarian zone,'” Sohn wrote in a note to clients.

The Invesco DB Commodity Index Tracking Fund (DBC), Energy Select Sector SPDR Fund (XLE) and the United States Oil Fund LP (USO) have all seen outflows over the past month, according to FactSet.

— Jesse Pound

Take-Two Interactive and Playtika look well positioned to benefit as the video game industry pivots toward subscription and cloud services, and competition ramps up across mediums, HSBC says.

“The strength of the content on offer will likely play an important role in success or failure,” wrote Mohammed Khallouf, who initiated coverage of both stocks with a buy rating. “We believe competition between the wellfunded platforms for content will likely prove lucrative for third-party game developers with strong intellectual properties like our coverage names.”

Khallouf is bracing for an EPS recovery for Playtika in the near term, and views a potential acquisition opportunity as a boon for shareholders. He also expects Take-Two’s upcoming Grand Theft Auto game to drive upside and “prove more lucrative” than previous iterations.

He added that “Take-Two is well placed to benefit as the industry changes given its strong intellectual properties and track record of consistent hit making, as well as to gain from any recovery in mobile gaming space.”

Shares of Take-Two and Playtika were last higher by 0.4% and 1.3%, respectively.

— Samantha Subin

The Dow has ended the last 11 sessions higher. Though none of the 30 stocks in the index has matched that timeframe, some are also on significant winning streaks, according to data analyzed by Bespoke Investment Group.

With Monday’s close, UnitedHealth has ended the last seven sessions higher, in a streak that kicked off the day of the health care stock’s second-quarter earnings report. IBM and Goldman Sachs have notched six-day streaks, while Chevron, Walgreens and Procter & Gamble completed five-day streaks.

To be sure, some Dow members are on losing streaks despite the index’s ascent. American Express has finished the last four sessions lower, while Salesforce notched a three-day losing streak with Monday’s close.

— Alex Harring

Shares of On Holding, the sportswear company known for its “On” running shoes, rose nearly 0.6% after KeyBanc said it was optimistic about the future of the stock.

Analyst Ashley Owens initiated coverage of the stock at overweight, noting the company has seen “explosive” growth and has conservative guidance for the 2023 fiscal year. Owens’ $42 price target implies shares could rally 18.4% over the next year from Monday’s close.

“On is a premium sportswear brand made by runners, for runners,” Owens said. “On continues to grow its brand awareness due to grassroots campaigns as well as its innovative and unique product line.”

— Alex Harring

It’s been a blockbuster year for the semiconductor space, with the PHLX Semiconductor index popping 48%. That momentum, however, will likely ease, according to Wolfe Research.

“While the majority of the space remains in good shape, we feel a near term pullback in the group is highly likely as momentum rolls over,” Wolfe strategist Rob Ginsberg wrote. “Whether it ends up being just a breather or the start of a more meaningful reversal remains to be seen.”

— Fred Imbert, Michael Bloom

Zscaler shares rose more than 4% after BTIG analyst Gray Powell upgraded the IT security name to buy from neutral. His price target of $185 also implies upside of 24.7% from Monday’s close.

“Our fieldwork leads us to believe that demand in the Secure Service Edge (SSE) has sustainably improved and that large projects which were put on hold in late 2022 / early 2023 are starting to move forward again,” Powell. “In addition, we left our work feeling confident in ZS’s ability to maintain its leadership position in the SSE market despite headlines on increasing competition.”

Zscaler has been on fire this year, rising more than 35%.

— Fred Imbert, Michael Bloom

Check out the companies making headlines in midday trading.

3M – Shares of the chemical manufacturer rose 5.5% following the company’s latest earnings report. 3M posted $7.99 billion in revenue, beating analysts’ estimates of $7.87 billion, according to Refinitiv. The company also raised its full-year earnings guidance and reaffirmed its revenue guidance.

F5 — Shares of the cloud software company rallied 5.7%. Late Monday, F5 posted a top- and bottom-line beat in its fiscal third quarter. The company reported adjusted earnings of $3.21 per share on revenue of $703 million. Analysts called for $2.86 in earnings per share and revenue of $699 million, according to Refinitiv.

NXP Semiconductors — Shares rose 4% following the chipmaker’s quarterly earnings announcement Monday after hours. NXP reported $3.43 in adjusted earnings per share on $3.3 billion in revenue. Analysts had estimated $3.29 earnings per share and revenue of $3.21 billion, according to Refinitiv. The company’s projected third-quarter earnings also topped analysts’ estimates. 

The full list can be found here.

— Hakyung Kim

The Teamsters union announced a tentative deal with UPS on Tuesday, apparently avoiding a strike that would have roiled the U.S. supply chain.

Shares of UPS moved higher following the announcement. They were last up by 0.4%.

— Jesse Pound

So far this earnings season about a fourth of companies in the S&P 500 have reported second-quarter results. Of the firms that have reported, 76% have topped earnings expectations while 62% have beaten revenue estimates, according to Refinitiv.

According to the blended growth rate, which includes companies that have reported and have yet to share results, earnings are expected to fall 7.7% from a year ago. The energy sector is expected to see the largest decline.

— Samantha Subin

Big-box retailers Costco and Walmart were among the 22 names in the S&P 500 reaching fresh highs Tuesday.

Oppenheimer hiked its price target for Costco on Tuesday, calling it a top pick even after the stock climbed more than 23% this year. Piper Sandler upgraded Walmart, saying the stock will claim market share on competitive grocery pricing.

Here are some other names reaching 52-week highs.

— Sarah Min, Chris Hayes

Advancers at the New York Stock Exchange held a slight edge over decliners in midday trading. More than 1,300 names traded higher, while 1,292 slipped.

— Sarah Min

Oppenheimer analyst Rupesh Parikh said in a note to clients on Tuesday that Costco is still a top pick even after the retailer’s stock has rallied more than 23% so far this year.

Parikh hiked the firm’s price target on Costco to $630 per share from $575. The new target is about 12% above where the stock closed on Monday.

“We believe COST is well-positioned to drive a comp re-acceleration in coming quarters and gain share in a continued challenged discretionary retail backdrop. Management also has a demonstrated track record of driving healthy levels of grocery comp growth even in low inflationary/deflationary backdrops,” the note said.

Notably, the Oppenheimer estimates still do not include a potential membership fee hike for Costco.

— Jesse Pound

Packaging Corporation of America was the best-performing stock in the S&P 500, as of midday trading.

Shares were last higher by more than 10% after the paper mill company topped earnings per share expectations in its second quarter. The company reported adjusted per-share earnings of $2.31, greater than the consensus estimate of $1.93 per share, according to FactSet.

Revenue came in below estimates, with the company posting $1.95 billion, lower than the FactSet consensus estimate of $1.99 billion.

— Sarah Min

The pressure on consumers is going to get intense over the next 12 months, UBS analysts said, citing factors like the return of student loan payments and the fallout from the Federal Reserve’s rate hikes as limits to spending power. But analyst Jay Sole says that’s not the consensus view and it will take a while for this narrative to play out.

Most people expect a “soft landing” and so with the back-to-school season ahead apparel retail stocks could benefit from investors’ “fear of missing out.” Sales that are “less bad” will drive stocks higher, he said. His favorite picks include On Holding, Deckers, Ralph Lauren and Skechers.

—Christina Cheddar Berk

Shares of RTX Corporation, known as Raytheon Technologies, plummeted more than 15% after the company revealed an engine issue.

The company revealed Tuesday that it will need to remove certain Pratt & Whitney engines for inspection earlier than expected due to what it described as a “rare condition in powder metal used to manufacture certain engine parts.”

While the issue does not impact engines currently in production, it affects a “significant portion” of the company’s PW1100G-JM engine fleet, powering the Airbus A320neo family. This will require am accelerated inspection timeline, including 200 accelerated removals by mid-September, RTX said.

— Samantha Subin

Consumer sentiment hit its highest level since July 2021, though the reading was a little shy of Wall Street expectations, The Conference Board reported Tuesday.

The board’s Consumer Confidence Index hit 117 in July, up from 110.1 in June and good for a two-year high. However, it was below the 112 estimate from Dow Jones.

Also, the expectations index jumped to 88.3, up from a reading of 80 in June that is also the dividing line for a recession outlook. The “jobs plentiful” index rose, while the current conditions index pulled back slightly.

Even with the improvement in sentiment and outlook, the perceived likelihood of a recession in the next 12 months edged up to 70.6%.

—Jeff Cox

Howmet Aerospace shares are down 1% despite the stock being initiated by Baird at an ouperform. Analyst Peter Arment said shares could hit $61 dollars, which implies 82% upside from where it’s currently trading — and that’s after a 27% year-to-date gain.

According to Baird, the company warrants a premium valuation because it manufactures highly specialized parts for the aerospace and transportation industries that are “best-in-class” and often secured under long-term contracts.

Howmet is a long-term OEM play, according to Arment, who advised his clients to “stay long and add on pullback” as this top supplier benefits from strong demand in the industry.

—Christina Cheddar Berk

The Dow Jones Industrial Average declined Tuesday after an 11-day advance.

The Dow traded 24 points lower, or 0.1%. The S&P 500 was marginally lower, while the Nasdaq Composite advanced 0.3%.

— Sarah Min

Home prices fell by a bit less than expected in May as the real estate market attempts to break a prolonged slump.

The S&P CoreLogic Case-Shiller index indicated that a composite measure of prices in 20 large U.S. cities fell 1.7% on a 12-month basis, compared to the Dow Jones estimate for a 1.9% decline.

However, the 20-city index posted a 1.5% monthly increase, leading an S&P official to say that the sequential decline in prices likely ended in January.

—Jeff Cox

The International Monetary Fund on Tuesday raised its growth forecast for the global economy, turning slightly more positive despite slowing momentum from China.

In the latest update to its World Economic Outlook, the IMF raised its 2023 global growth prediction by 0.2 percentage points to 3%, up from 2.8% at its April assessment. The IMF kept is 2024 growth forecast unchanged at 3%.

In terms of inflation, the Fund also expects an improvement from last year. Headline inflation is projected to reach 6.8% this year, falling from 8.7% in 2022. However, core inflation, which strips out volatile items, is seen declining more slowly to 6% this year, from 6.5% last year.

— Silvia Amaro

It’s a big earnings week for tech companies, and how they perform could tell traders whether the rally can continue, according to Wolfe Research.

The Wall Street firm said the earnings results of the companies that make up the “Big Seven” have an outsized impact on their valuations, making them either “double winners” or “double losers.” The Big Seven are the large tech firms that drove most of the gains in the broader market this year, such as Alphabet, Amazon and Apple.

“These reports should go a long way in determining whether this rally still has legs,” the firm’s Chris Senyek wrote Tuesday. “Our sense is that it does over the near term.”

Google-parent Alphabet and Microsoft report Tuesday after the close. Meta reports Wednesday afternoon.

— Sarah Min

It’s time to hold off on adding exposure as traders watch where the rally will go from here, according to Fairlead Strategies’ Katie Stockton.

“We do see sort of minor signs of upside exhaustion as we get into a lot of earnings flow and what have you, but we’re still recommending that our clients hold on to their equity positions,” the technical strategist told CNBC’s “Squawk Box” on Tuesday. “We’re not any longer recommending that they add exposure.”

“And we say that because we are seeing less in the way of positive technical catalysts. We saw a lot of breakouts between May and just recently, but they’re starting to quiet down a bit. And earnings season, so far it’s fine, but it’s not generating more of those breakouts,” she added.

— Sarah Min

These are some of the stocks making the biggest premarket moves:

• General Motors — Shares of General Motors rose more than 1% before the bell after the automaker raised its full-year guidance and reported second-quarter results that rose on a year-over-year basis.
• 3M – The chemical manufacturer gained about 2% in premarket trading following the company’s latest earnings report. 3M posted $7.99 billion in revenue, beating analysts’ estimates of $7.87 billion, according to Refinitiv. The company also raised its full-year earnings guidance and reaffirmed its revenue guidance.
• Verizon — The telecommunications giant traded 2.6% up after reaffirming its full-year guidance. That came despite a mixed second quarter, with Verizon posting $1.21 in earnings per share, excluding items, on $32.6 billion in revenue. Analysts polled by Refinitiv estimated $1.17 earnings per share and revenue of $33.24 billion.

See the full list here.

— Alex Harring

Citi downgraded Goldman Sachs stock on Tuesday as the firm may have difficulty reaching its long-term targets.

Analyst Keith Horowitz says that Goldman’s target of a 15% to 17% target return on tangible common equity (ROTCE) may be out of reach in the current market environment.

“The uncertainty of executing on its longer-term initiatives leads us to see more balanced risk/reward for the stock at these levels,” Horowitz said.

Shares of Goldman Sachs declined slightly during premarket trading.

CNBC Pro subscribers can read the full story here.

— Brian Evans

Piper Sandler upgraded Walmart stock on Monday thanks to competitive grocery pricing and steep rollbacks.

“While we think intuitive logic dictates that WMT is well positioned during an inflationary period (trade down), we believe that a gradual intensification of promos augurs well for WMT given its sharp focus on price, and we raise our estimates accordingly,” analyst Edward Yruma said.

Walmart stock gained 1% in the Tuesday premarket.

CNBC Pro subscribers can read the full story here.

— Brian Evans

Atlantic Equities downgraded Disney stock on Tuesday as the company contends with lower ad spending and disappointing box office performances.

“Box office performance has also struggled with a clear decline from the 2019 Avengers: Endgame series climax,” analyst Hamilton Faber said. “While the cyclical nature of the MCU films means this should be expected, whether Marvel can build to a second Avengers climax in 2026 is wholly dependent on the performance of current films, and indications are not encouraging.”

Shares declined about 0.7% in premarket trading Tuesday.

CNBC Pro subscribers can read the full story here.

— Brian Evans

GM said it’s raising its 2023 guidance for a second time this year, adding that it’s increasing cost cuts through 2023. The automaker now sees full-year earnings of $12 billion to $14 billion, up from a range of $11 billion to $13 billion.

The company also reported second-quarter earnings that were up sharply from the year-earlier period.

Shares rose 1.5% in the premarket.

— Fred Imbert, Michael Wayland

U.S. Treasury yields were higher on Tuesday as the Federal Reserve’s meeting is due to kick off and investors considered the outlook for interest rate decisions from central banks in major global economies that are expected this week.

At 4:27 a.m. ET, the 10-year Treasury was trading over two basis points higher at 3.8845%. The 2-year Treasury yield was last up more than two basis points to 4.8619%.

— Sophie Kiderlin

Hong Kong’s Hang Seng index surged more than 4% on Tuesday, led by real estate stocks rebounding after China vowed more support for its beleaguered property sector.

Real estate developer Longfor Group jumped almost 20% and was the biggest gainer on the index, while property management firm Country Garden Services Holdings surged 17.54%.

Hong Kong tech names were also part of the top gainers on the index, with the Hang Seng Tech index climbing 4.57% and led by electric vehicle makers. Chinese EV maker Xpeng saw a 12.75% gain, while Nio climbed 9.79%.

— Lim Hui Jie

Earnings were the main driver of individual share price action in Europe on Tuesday.

Unilever shares climbed 5% in early trade to lead the Stoxx 600 after the British consumer goods company beat analyst expectations to report a 7.9% rise in underlying second-quarter sales.

At the bottom of the European blue chip index, Dassault Systemes fell 5% after its second-quarter earnings report, in which the French software company reported a slowdown in growth in its 3D and cloud businesses.

— Elliot Smith

The pan-European Stoxx 600 index hovered around the flatline in early trade, with mining stocks jumping 2.8% while healthcare stocks fell 0.8%.

South Korea’s gross domestic product grew 0.9% year-on-year in the second quarter of 2023, according to advance estimates.

This was unchanged from the 0.9% seen in the first quarter, and beat the 0.8% estimate by economists polled by Reuters.

On a quarter to quarter basis, South Korea’s GDP grew 0.6%, the largest quarterly growth seen since the second quarter of 2022.

— Lim Hui Jie

It’s early in the second quarter earnings reporting season but, so far, the majority of both U.S. and European companies are beating analyst estimates but the performance of their stocks is lagging, according to JPMorgan.

“Out of early reports, with 70 S&P 500 results and 90 in Europe, the majority are beating the consensus projections,” Mislav Matejka, head of global and European equity strategy at JP Morgan, said in a note to clients early Monday. “The sample set is relatively small, but the stock price reaction to the beats is worse than typical.”

Moreover, JPMorgan looked at companies issuing profit warnings ahead of second quarter earnings, and stocks within that group are down 10% or more, the exception being some energy and chemical stocks, probably because of their poor first half performance entering July.

Bottom line, JPMorgan doesn’t expect second quarter earnings to give the market much of a boost compared with the first quarter, for a couple of reasons. “Stock price reactions in general could be more muted this time, or at least any positive momentum might not have legs,” Matejka wrote. “Ahead of Q1, sentiment and positioning were cautious, but the equity market was strong coming into Q2 reporting season, suggesting buyside expectations are more elevated, even as analyst projections are subdued. Also, the question is whether the guidances will be raised on the back of quarterly beats, as there was some loss of momentum as we moved through the quarter, and China dataflow continues to disappoint.”

— Scott Schnipper, Michael Bloom

U.S. stock futures opened little-changed Monday.

Futures tied to the Dow Jones Industrial Average shed just 5 points, or 0.01%. Meanwhile, S&P 500 futures and Nasdaq 100 futures ticked up 0.02% and 0.03%, respectively.

— Hakyung Kim