Stock futures are pointing to a steady start for Wall Street on Tuesday, as investors eagerly anticipate bank earnings and data on U.S. retail sales.
Bank of America Expects Strong Second-Quarter Profit Jump
Bank of America (BAC) is scheduled to report its earnings before the opening bell today. Analysts are anticipating a robust second-quarter profit of $6.9 billion, representing an 11% increase from the previous year. Earnings per share are expected to reach 84 cents, with revenue projected at $25 billion. The driver of these profit gains is anticipated to be an increase in net interest income to $14.2 billion.
Morgan Stanley Faces Profit Slowdown
Morgan Stanley (MS) is also set to announce its second-quarter earnings today. However, the investment bank is expected to face a profit slowdown due to a decrease in deal making activity. Analysts surveyed by FactSet estimate a second-quarter profit of $1.20 per share, down from $1.44 during the same period last year.
Other Financial Companies Reporting Today
Today will see several other financial companies release their earnings as well, including Charles Schwab (SCHW), PNC Financial (PNC), and Bank of New York Mellon (BK). Investors will be eager to analyze the performance of these institutions.
Novartis Raises Full-Year Outlook and Announces Buyback
In premarket trading, American depositary receipts of Novartis (NVS) experienced a 3.5% rise following the Swiss pharmaceutical company’s announcement. Novartis has raised its full-year outlook and revealed plans for a $15 billion buyback.
Masimo Experiences Sales Decline, Takes Actions to Reduce Costs
Masimo (MASI), a hospital-equipment maker, witnessed a significant decline of almost 27% after projecting second-quarter sales of $453 million to $457 million. This figure falls below analysts’ forecasts of $553 million. Masimo attributed the decline to delayed large orders, which are now expected to be fulfilled in the second half of the year. As a result, the company stated that it is actively taking measures to reduce costs in the latter half of 2023.
FB Financial Beats Earnings Expectations
FB Financial (FBK) is on the rise, with a 16% increase in stock after the parent company of FirstBank announced second-quarter earnings exceeding estimates. FB Financial reported earnings of 77 cents per share, surpassing expectations of 65 cents.
Lockheed Martin’s Quarterly Earnings Focused on F-35 Fighter
Today, all eyes will be on Lockheed Martin (LMT) as they report their quarterly earnings. Investors are particularly interested in the performance of the F-35 jet fighter, as slower deliveries may impact the second half of 2023. Analysts are predicting second-quarter earnings of $6.45 per share on sales of $15.92 billion.
