U.S. stocks: Futures firm up ahead of key bank earnings

U.S. stocks were poised for a rebound on Tuesday, with futures ticking higher ahead of retail-sales data and the first slew of prominent bank earnings, including J.P. Morgan results.

On Monday, the benchmarks settled lower in a thinly traded session amid concerns the first-quarter earnings season will be a disappointing affair.

“Thanks to the strength of the dollar and lower energy prices, analysts have been progressively downgrading their estimates of profit growth. So far, U.S. equity markets have taken these earnings downgrades in their stride,” said Rebecca O’Keeffe, head of investment at stockbroker Interactive Investor, in a note.

“However, if there is evidence that the picture is not improving in Q2, the market may find it more difficult to sustain current valuations, especially if rising employment levels raise the prospect of a potential June rate hike from the Fed,” she added.

Earnings: The earnings season gets into full swing on Tuesday, when the first big banking reports are expected to come out. J.P. Morgan Chase & Co. JPM, +0.77% is forecast to post first-quarter earnings of $1.39 a share, according to a consensus estimate from FactSet.

Wells Fargo & Co. WFC, +0.22% is likely to post first-quarter earnings of 98 cents a share.

Aside from the banking sector, drug maker Johnson & Johnson JNJ, +1.50% is projected to post first-quarter earnings of $1.53 a share.

Intel Corp. INTC, -0.13% is also slated to report after the bell, expected to post first-quarter earnings of 41 cents a share.

CSX Corp. CSX, -2.93% is expected to report first-quarter earnings of 44 cents a share after the market closes. CSX shares started falling in sympathy after hours Monday following Norfolk Southern Corp.’s NSC, -5.42% profit warning owing to lighter-than-expected coal shipments. Shares of both companies were unchanged premarket Tuesday.

Other stocks to watch: Shares of Best Buy Co. BBY, -0.62% could be active after the electronics retailer late Monday said its chairman, Hatim Tyabji, will retire on June 9 after three years in the role.

Data: There is also plenty to look for on the data calendar Tuesday. At 8:30 a.m. Eastern Time, retail sales for March are due and expected to show a 1.1% rise.

Also at 8:30 a.m. Eastern, the producer-price index for March will be out. The NFIB small-business index for March is due at 9 a.m., followed by February business inventories at 10 a.m.

Minneapolis Fed President Narayana Kocherlakota will speak at an open forum about the economy in Winona, Minn., at 8 p.m. Eastern. Kocherlakota is not a voting member of the Federal Open Market Committee this year. JNJ, +0.46% is projected to post first-quarter earnings of $1.53 a share.

Intel Corp. INTC, -0.13% is also slated to report after the bell, expected to post first-quarter earnings of 41 cents a share.

CSX Corp. CSX, -2.93% is expected to report first-quarter earnings of 44 cents a share after the market closes. CSX shares started falling in sympathy after hours Monday following Norfolk Southern Corp.’s NSC, -5.42% profit warning owing to lighter-than-expected coal shipments. Shares of both companies were unchanged premarket Tuesday.

Other stocks to watch: Shares of Best Buy Co. BBY, -0.62% could be active after the electronics retailer late Monday said its chairman, Hatim Tyabji, will retire on June 9 after three years in the role.

Data: There is also plenty to look for on the data calendar Tuesday. At 8:30 a.m. Eastern Time, retail sales for March are due and expected to show a 1.1% rise.