Market Snapshot: Stock futures edge higher as banks kick off earnings season

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Stock-index futures point to a slightly higher start for Wall Street Tuesday as earnings season gets fully under way and investors weigh the implications of a partial U.S.-China trade deal.

Futures on the Dow Jones Industrial Average YMZ19, +0.28%  rose 92 points, or 0.3%, to 26,838, while S&P 500 futures ESZ19, +0.27%  gained 10.25 points, or 0.3%, to 2,975.50. Nasdaq-100 futures NQZ19, +0.17%  rose 20 points, or 0.3%, to 7,877.50.

The Dow DJIA, -0.11%  edged 29.23 points lower on Monday to end at 26,787.36, a loss of 0.1%. The S&P 500 SPX, -0.14%  closed 4.12 points lower, down 0.1%, at 2,966.15, while the Nasaq Composite COMP, -0.10%  lost 8.39 points, or 0.1%, to finish at 8,048.65.

Read: 5 prominent U.S. companies are most at fault for the earnings recession

Enthusiasm over a U.S.-China trade deal boosted stocks at the end of last week, but analysts said a lack of detail around planned tariff increases and other elements damped enthusiasm, leaving stocks to drift lower on Monday.

“The latest twist in the U.S.-China trade conflict is yet another reminder to investors not to get caught up in the hype. Trying to bridge the conflicting interests between the world’s two largest economies is a gargantuan task; an undertaking that has already proven to be protracted and complicated,” said Han Tan, market analyst at FXTM, in a note.

Speaking with reporters in London, St. Louis Fed President James Bullard said investors might be too optimistic about how long it takes to reach trade deals. He also emphasized that data on consumption, while strong, was “backwards looking” and said that was why he has been “emphasizing these downside risks and also emphasizing pre-emptive types of action to stay out of recession.”

Bullard dissented last month from the Federal Reserve’s decision to cut interest rates by a quarter point, calling instead for half-point decrease.

Meanwhile, some of Wall Street’s biggest banks were set to deliver earnings ahead of the bell. Shares of JPMorgan Chase & Co. JPM, +0.27%  were higher in premarket action after delivering results.

Shares of Goldman Sachs Group Inc. GS, +0.56% GS, +0.56% were lower in premarket action after delivering earnings that came in below Wall Street estimates.

Shares of BlackRock Inc. BLK, +0.05%  were holding slight gains after reporting a smaller-than-expected fall in profit.

Check out: Banks look to put earnings recession in revers, but aren’t expected to succeed

Other banks set to report include Citigroup Inc. C, +0.20% and Wells Fargo & Co. WFC, +0.12%.

Shares of UnitedHealthGroup Inc. UNH, -0.67%  jumped in premarket trade after earnings and revenue came in above expectations and after the health-care services company raised its full-year outlook.

Johnson & Johnson JNJ, -0.46%  shares were also higher in premarket after third-quarter results.