United States stock futures edged lower Monday night (Tuesday AEST), as investors looked ahead to a key inflation reading and a wave of earnings from major financial institutions, following a positive start to the week for equity markets.
By 9 am AEST (11 pm GMT), Dow Jones Industrial Average futures, S&P 500 futures and Nasdaq 100 futures were down 0.1% apiece.
In extended deals, FB Financial Corporation dropped 4.3% after releasing its second-quarter results, with total revenue coming in at US$76.86 million versus $136.51 million expected.
La-Z-Boy also traded lower, falling 8% after issuing a cautious update. The company now expects its fiscal first quarter sales and adjusted operating margin to be around the low end of the ranges in the previously issued outlook, in light of an increasingly challenging consumer and macro environment.
S&W Seed tumbled 32.4% after announcing plans to delist from the Nasdaq exchange.
The after-hours action follows a positive close on Wall Street, with investors largely brushing off renewed trade concerns.
Stocks rose Monday even after President Donald Trump threatened to impose a 30% tariff on the European Union and Mexico beginning 1 August.
The Dow Jones Industrial Average added 0.2%, the S&P 500 rose 0.1%, and the Nasdaq Composite climbed 0.3%.
Investor attention now shifts to the second-quarter earnings season, with major banks including JPMorgan Chase, Wells Fargo, and Citigroup set to report during Tuesday's U.S. session. On Wednesday, Bank of America, Goldman Sachs, and Morgan Stanley are set to deliver results.
Markets are also closely watching the June consumer price index (CPI), which is expected to show a 0.3% monthly increase, with the annual headline rate rising to 2.7%.
ANZ analysts commented in a note to clients: "The CPI release for June will be the last major data ahead of the July FOMC meeting. The consensus expectation is for a 0.3% m/m rise in headline and core inflation. This compares to our forecast of 0.2% m/m rise in headline and a 0.3% m/m rise in core inflation.
"We anticipate some signs of tariff passthrough, but do not expect this to be broad based in the June data. It is likely that businesses are still running down inventories built up ahead of tariff hikes and soaking up some of the additional cost via margin squeeze."
