Stock futures rise ahead of major earnings reports

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NEW YORK (NewsNation) — Wall Street appeared to be headed for gains before markets opened Monday ahead of another week loaded with quarterly earnings reports from major U.S. corporations.

Futures for the Dow Jones Industrial Average rose 1% as did futures for the S&P 500. Oil prices also rose.

Investors are waiting for earnings reports from several high-profile companies, including Netflix, American and United airlines, Tesla and Twitter.

On Monday, Bank of America, the nation’s second-largest bank, said profit slid 32%, with tough comparisons to last year when it and other major banks released billions of dollars from its loan loss reserves, which is money set aside during the pandemic to cover potentially bad loans.

Solid earnings from big companies and an encouraging report on consumer sentiment helped lift shares on Friday, but Wall Street benchmarks still ended the week lower.

A July survey from the University of Michigan showed that inflation expectations held steady or improved, along with general consumer sentiment. That was welcome news after reports that showed consumer prices remained extremely hot in June, along with wholesale prices for businesses.

The report also bodes well for investors looking for signs that the Federal Reserve might eventually ease off its aggressive policy to fight inflation.

The S&P 500 rose 1.9%, snapping a five-day losing streak. The Dow Jones Industrial Average rose 2.1%, the Nasdaq gained 1.8% and the Russell 2000 index ended 2.2% higher.

Inflation and its impact on businesses and consumers remain a key focus for Wall Street. The Federal Reserve has been raising interest rates in an effort to curtail rising inflation. The Fed has already raised rates three times this year.

In other trading, U.S. benchmark crude oil gained $2.26 to $99.85 per barrel in electronic trading on the New York Mercantile Exchange. It gained $1.81 to $97.59 per barrel on Friday.

Brent crude, the standard for international trading, jumped $2.75 to $103.91 per barrel.

The U.S. dollar slipped to 138.33 Japanese yen from 138.98 yen. The euro rose to $1.0135 from $1.0080.

The Associated Press contributed to this report.

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