US Futures Slip Ahead of Big Bank Earnings

US equity futures trended lower on Tuesday as traders positioned for the third-quarter earnings reports of major Wall Street banks. The S&P 500 fell 0.2% and the Nasdaq 100 declined 0.5% in premarket trading, while the Dow Jones Industrial Average rose 0.6%. The Dow had finished the previous session higher for the third consecutive day, whereas the S&P 500 and Nasdaq Composite closed in the red on Monday.

JPMorgan Chase (JPM), Goldman Sachs (GS), Wells Fargo (WFC), and Citigroup (C) are scheduled to release their financial results before the market opens. Bank of America (BAC) and Morgan Stanley (MS) will follow with their own reports on Wednesday. Oppenheimer noted in an earlier October client memo that earnings for certain major banks, including Goldman Sachs and Morgan Stanley, are expected to face pressure due to broader concerns regarding capital markets revenue.

UBS Securities highlighted the rising relevance of the debate around net interest income versus net interest margin for bank investors, particularly in the regional banking space. The firm stated in a note emailed on Monday that this discussion is becoming increasingly important as third-quarter earnings approach and the 10-year Treasury yield remains above 5.2%. Treasury yields moved lower early Tuesday, with the two-year rate down 2.1 basis points to 4.77% and the 10-year rate off 0.5 basis points to 5.19%.

Outside the financial sector, UnitedHealth (UNH) shares climbed 2.3% before the bell after the company raised its full-year earnings outlook. Johnson & Johnson (JNJ) shares fell 1.1% following its third-quarter results release. Domino's Pizza (DPZ) and Albertsons (ACI) are also expected to post their financials before the opening bell.

Several Federal Reserve officials are slated to speak on Tuesday, including Governor Christopher Waller, Richmond Fed President Thomas Barkin, and Boston Fed President Susan Collins. The September existing home sales report is due at 10 am ET, while last month's consumer price index data is scheduled for Wednesday. September data on wholesale prices and retail sales will be released Thursday.

Commodities showed mixed results, with West Texas Intermediate crude oil and Brent crude each falling nearly 2% to $91.90 and $104.55 a barrel, respectively. Spot gold edged up 0.4% to $4,207 per troy ounce, while bitcoin rose 0.9% to $83,366.