U.S. stock futures were mixed Tuesday morning as traders assessed climbing oil prices, a flood of bank earnings, and the imminent arrival of June inflation data. Dow Jones Industrial Average futures fell roughly 0.9%, S&P 500 futures slipped 0.2%, and Nasdaq $NDAQ-100 futures rose 0.4%.
IBM $IBM stock fell 16% before the open after the company reported preliminary second-quarter adjusted earnings of $2.93 per share. That missed analyst expectations of $3.01 per share, according to CNBC.
Oil prices extended their climb Tuesday, with U.S. crude topping $80 per barrel, up 3.4% on the day. The move followed a 9%-plus surge in Brent crude on Monday — its biggest single-day gain since 2020 — after President Donald Trump announced he would reinstate a blockade on Iranian shipping through the Strait of Hormuz. "We are reinstating the THE IRANIAN BLOCKADE, so named because it is only stopping Iran's ships or customers from entering or leaving," Trump wrote on Truth Social. The announcement sent stocks lower on Monday.
Major U.S. benchmarks fell in Monday's session on the back of the oil spike. Semiconductor stocks bounced back Tuesday, with the VanEck Semiconductor ETF up 1.8% ahead of the open. Among individual names, Applied Materials $AMAT, Lam Research $LRCX, STMicroelectronics, and Teradyne each gained more than 3%, with Micron $MU adding close to 3%.
Bank earnings also commanded attention. JPMorgan $JPM Chase, Bank of America $BAC, and Wells Fargo $WFC all reported second-quarter results, with the latter two posting profit jumps, according to The Wall Street Journal. Results from Goldman Sachs $GS and Citigroup $C were still pending as of Tuesday morning.
June's consumer price index is due out at 8:30 a.m. ET. Federal Reserve Chair Kevin Warsh is then scheduled to appear before Congress at 10 a.m. ET to deliver his semiannual monetary policy testimony — his first such appearance since taking over as Fed chair. With energy prices pushing higher, stagflation fears have returned to the fore, and futures markets now show roughly even odds that the Fed will raise rates within the next two weeks, according to The Wall Street Journal.
Treasury yields were pressing higher Tuesday, with the 10-year U.S. Treasury yield at 4.618%.