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S&P 500 futures hold near record levels, Dow slips as big banks’ profits come into focus
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S&P 500 futures hold near record levels, Dow slips as big banks’ profits come into focus

U.S. stock futures traded mixed on Monday but held near record highs as investors braced for the next set of earnings from major banks to test this rally and the chances of an economic “soft landing.”

S&P 500 futures (ES=F) rose about 0.2% after closing above 5,800 for the first time, while contracts on the tech-heavy Nasdaq 100 (NQ=F) rose 0.3%. Dow Jones Industrial Average futures (YM=F) fell 0.2%.

Results take center stage as the first full week begins with third quarter results. The course of the season is considered crucial for the stock rally as the bull market turns two years old.

The Dow and S&P 500 capped a successful week with new records after earnings from JPMorgan Chase (JPM) and Wells Fargo (WFC) largely passed Wall Street’s test. Investors continue to focus on large banks. The reports from Goldman Sachs (GS), Citi (C) and Bank of America (BAC) are due on Tuesday, Morgan Stanley (MS) will be published on Wednesday.

At the same time, there remains uncertainty about whether the Federal Reserve will cut interest rates again. Some analysts argue that a favorable jobs report and data showing “sticky” consumer and wholesale inflation are an argument for not forgoing a rate cut in November. Retail sales data later in the week will feed into the debate over whether the economy has held up in the face of Fed policy – the preferred soft landing.

Read more: What the Fed’s interest rate cut means for bank accounts, CDs, loans and credit cards

Elsewhere, Chinese stocks initially wobbled as investors seized on Beijing’s latest stimulus promise, but they managed to rise and revive their recent historic rally.

On the corporate front, Boeing (BA) shares fell premarket as questions emerged about the future of the troubled aircraft maker. The company, which posted record losses of $5 billion in the third quarter, has cut 17,000 jobs as a month-long strike ravages production.

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