US equity futures faced a downturn on Monday morning as the third quarter earnings season commences this week. The Dow Jones Industrial Average futures experienced a decline of 0.4%, while S&P 500 futures dropped by 0.5%. The Nasdaq futures showed the most significant decrease, down 0.6%. As the earnings reporting season heats up, Pepsico is set to announce its earnings on Tuesday.
This will pave the way for major banking institutions like JPMorgan and Wells Fargo, which are expected to release their quarterly results on Friday, marking the official start of earnings season. Investors are keenly watching these reports to gauge the financial health of these corporations amid a fluctuating economic environment. In the commodities market, oil prices witnessed an increase, with the front-month global benchmark, North Sea Brent crude, climbing 1.7% to $79.39 per barrel.
Meanwhile, the US West Texas Intermediate crude rose by 1.9%, reaching $75.81 per barrel. This uptick in oil prices may have an impact on inflation and consumer spending patterns going forward. Later in the day, consumer credit data is slated for release at 3 pm ET. Current estimates suggest that consumer credit may decrease to $11.8 billion in August, a notable drop from $25.45 billion reported in the previous month.
Such a significant shift could provide insights into consumer behavior and financial confidence as the economic landscape evolves. Overall, the combination of the earnings season kickoff and the consumer credit report is likely to set the tone for market movements in the coming days..