In This Article:
Futures edged down Tuesday morning, with the S&P 500, Nasdaq, and Dow trading just below break-even, as investors braced for a flurry of corporate earnings. The muted open followed Monday’s tech-led rally, which briefly masked deeper market jitters tied to tariffs and macro uncertainty.
That rally capped a volatile session, with the Dow gaining 0.78%, the S&P 500 rising 0.79%, and the Nasdaq up 0.64%. All three indexes dipped into negative territory before recovering, lifted by tech stocks after the Trump administration announced a surprise tariff exemption. Apple (AAPL) climbed more than 2%, while Palantir Technologies (PLTR) jumped nearly 5% after NATO finalized its acquisition of the company’s AI-powered Maven Smart System.
Auto stocks also rallied on hopes of tariff relief, after Trump floated the possibility of exemptions for carmakers shifting parts production. General Motors (GM) and Ford (F) both gained over 3%, though no formal policy details were released.
Now, the focus shifts to earnings
Bank of America (BAC), Citigroup (C), and Johnson & Johnson (JNJ) all reported results Tuesday before the bell, offering an early read on consumer credit, capital flows, and healthcare demand. Rent the Runway (RENT) also posted earnings, adding a data point from the consumer discretionary space.
After the close, United Airlines (UAL) and Interactive Brokers (IBKR) are set to report, offering insights from the travel and trading sectors still to come.
Bank of America beats — like other banks
Bank of America beat expectations in the first quarter, with EPS of $0.90 on $27.37 billion in overall revenue, lifted by a strong showing in its trading division. Like Goldman Sachs (GS), the bank benefited from market volatility, which juiced results even as the broader economic outlook remains uncertain.
Looking to Bank of America’s consumer banking division, revenue rose 3% to $10.5 billion, with combined credit and debit card spend hitting $228 billion — up 4% from a year ago. The bank added around 250,000 new consumer checking accounts, marking its 25th straight quarter of growth, and logged 4 billion digital logins, with 65% of sales now digitally enabled.
Still, CEO Brian Moynihan struck a cautious tone, noting that “we potentially face a changing economy in the future.”
Citi rides card growth and trading gains to a Q1 beat
Citigroup posted first-quarter 2025 net income of $4.1 billion, or $1.96 per share, on $21.6 billion in revenue — a 3% increase from a year ago. Growth was broad-based across all five core businesses, with standout performances in the Markets and Wealth divisions.
