Tuesday saw a small decline in U.S. stock futures as the third-quarter results season picked up.
Dow Jones Industrial Average-related futures decreased 71 points, or 0.2%. Both Nasdaq 100 and S&P 500 futures experienced a 0.3% decline.
The third quarter adjusted earnings and revenue for Johnson & Johnson were stronger than projected, helped by robust sales of medical technology and pharmaceuticals. As a result, the company’s stock price increased by more than 1% before the bell. The stock increased in premarket trading as Bank of America’s results beat analyst projections as well.
Small caps ought to take the lead if the economy is going to pick up speed again, which it is doing, and if profits growth is going to do the same. The evidence from history supports that, said Richard Bernstein, CEO of Richard Bernstein Advisors, on Monday’s “Closing Bell: Overtime” on CNBC. “So I think there’s a small element of reason coming back to the equities market, and this market is starting to broaden out a little bit,” the author said.
Charles Schwab on Monday and JPMorgan Chase on Friday were two financial companies that had a great start to the earnings season.