U.S. stocks were little changed at Monday’s market open ahead of another round of critical earnings.
The S&P 500 (^GSPC), the technology-heavy Nasdaq Composite (^IXIC) and the Dow Jones Industrial Average (^DJI) were mostly flat as of 9:42 AM ET.
Bond yields were up. The yield on the 10-year note climbed to 3.56%, while the two-year note yields gained to 4.15% Monday morning.
On the commodities front, gold futures (GC=F) are holding on to key levels above $2,000 per ounce on the back of hawkish rate hikes comments from Federal Reserve officials last week. Crude oil (CL=F) hovered above $80 a barrel.
Stocks ended lower on Friday, with the Dow Jones Industrial Average down more than 100 points but notching its fourth consecutive weekly gain. It came as disappointing data on March retail sales offset excitement after initial corporate earnings reports came in better than expected.
On Friday, the first round of earnings kicked off since the collapse of Silicon Valley Bank and Signature Bank, with JPMorgan (JPM) reporting a record quarterly revenue that beat analyst estimates, boosting the stock 7.5%. On the same day, Citi (C) and Wells Fargo (WFC) also topped expectations.
As the first flurry of bank earnings impressed investors following the collapse of three US banks last month, it has left analysts asking, “What banking crisis?” Still, the fallout will result in challenges ahead for the industry.
Earnings season will pick up steam, with another host of bank earnings on deck this week. The beleaguered regional banks will be up to bat, with Bank OZK (OZK), Zions Bancorporation (ZION), and others expected to complement reports from bank heavyweight like Bank of America (BAC), Goldman Sachs (GS), and Morgan Stanley (MS).
Meanwhile, investor favorites Netflix (NFLX), Lockheed Martin (LMT), Johnson & Johnson (JNJ) and Tesla (TSLA) are expected to post quarterly earnings.
On the economic front, housing data will take center stage with NAHB Housing Index data, housing starts, existing home sales, and mortgage rate and application data all expected to be updated this week, offering a picture of the housing market amid a slightly softening rate environment.
Outside of housing, unemployment and PMI data is anticipated, each of which could serve as insight into the Fed’s decision making ahead of its blackout period, which starts on Saturday.
Separately, U.S. Treasury Secretary Janet Yellen said during an interview that tighter lending following recent bank failures could substitute for further rate hikes. Eight Fed officials are slated to speak this week, and market strategists are waiting to see if they will all agree.
Markets have priced in a 84% probability that the Federal Reserve will raise interest rates by another 0.25% in May, according to data from the CME Group.
In single-stock moves, shares of Alphabet Inc. (GOOG) were down nearly 4% Monday morning after reports that Samsung Electronics was considering replacing Google with Microsoft-owned Bing as the default search engine to its devices.
State Street Corporation (STT) shares plunged more than 14% after reporting a miss in quarterly profits due to a fall in fee income amid the recent banking turmoil.
Shares of M&T Bank Corporation (MTB) ticked down after the company reported better than expected first quarter earnings, signaling confidence for the regional lender amid fallouts in the wider banking sector earlier this year.
Charles Schwab Corporation (SCHW) shares were lower Monday morning after the firm reported a loss of $41 billion in deposits, the first three months of 2023 in their latest earnings.
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Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv
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