US stock futures rise after Trump announces Japan trade deal
The upcoming U.S. earnings season, set to kick off this week, is expected to significantly influence equity markets over the next month. Prominent banks, including JPMorgan Chase & Co. (NYSE:JPM), Citigroup (NYSE:C), and PNC Financial Services Group (NYSE:PNC), are preparing to announce their quarterly earnings on Friday. The banking sector's performance will be a focal point of interest as analysts anticipate decreased profits for all U.S. banks, except JPMorgan Chase & Co., according to Angela Barnes from IGTV.
Scott Krisiloff, a finance expert who recently appeared on Yahoo Finance Live, highlighted the importance of closely monitoring interest-rate sensitive sectors. This comes amid rising long-term interest rates and their potential impact on these sectors and the mortgage industry. Despite the concerns, Krisiloff assuaged fears of an ongoing financial crisis, particularly those arising from long-duration asset securities portfolios within banking institutions.
In addition to the banking sector, PepsiCo (NASDAQ:PEP) is scheduled to report its quarterly results on Wednesday. The company is expected to outperform expectations despite the current high inflation environment. However, PepsiCo's stock has experienced a 14% drop from its yearly peak due to consumers shifting towards more cost-effective brands and concerns over the company's high debt-to-cash flow ratio.
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