S&P futures suggest an up open of about two points. Good news for Spain is providing a modicum of support.
Euro-zone finance ministers, at yet another emergency meeting, agreed to give Spain an additional year to meet their deficit targets. There was also agreement to move forward with some of the money to prop up Spanish banks. Spanish bond yields dropped back below 7% to 6.88%. The Spanish stock exchange is up 1.3%.
Alcoa kicked off earnings season with a seemingly decent earnings report. Revenue beat forecasts, and profits were in line according to one estimate and a penny above by another. But compared to the same quarter a year ago revenue was down 9.4% and profits fell 81%, to just $0.06 a share. Commodity-based firms had a very difficult second quarter. The materials and energy sectors are expecting to post aggregate earnings declines for the quarter. Alcoa stock is up $0.08 to $8.84 pre-market but is down from $16 a year ago and $40 five years ago.
There are no particularly important earnings reports, but five medium to small companies grace our earnings calendar this morning. All reported earnings below forecasts. An inauspicious start overall to earnings season.
The next earnings reports of note are Marriott on Wednesday morning, and JP Morgan Chase and Wells Fargo on Friday morning.
There are no economic releases today. It is a slow week for data, with only the weekly new claims data on Thursday and PPI on Friday of major significance.
The market action was calm yesterday and there is a chance of relative stability ahead of the key banking earnings reports on Friday.
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