Futures Mixed as Banks Report; Dow Up, Nasdaq Down on Chips

Good morning. This is Trade and Ticker. Tuesday, October thirteenth, twenty twenty-six. We're lining up the open: what futures are saying and what to watch when the bell rings.

Daily Catalysts. Four things to watch today. First, big bank earnings — JPMorgan, Goldman Sachs, Wells Fargo, and Citigroup all reported before the open, and the scorecard is mixed. Second, the chip and A-I selloff that hit hard Monday is still hanging over Nasdaq futures. Third, oil is easing from Monday's highs but Brent is still around one hundred five dollars. Fourth, healthcare prints from UnitedHealth and Johnson and Johnson, plus a busy inflation week ahead with consumer prices tomorrow. We'll get into each of these as we go.

Let's start with U.S. futures. The board is mixed heading into the open, and the split is clear. As of about eight Eastern, Dow futures are up about seven-tenths of a percent, or roughly three hundred fifty points. S-and-P futures are down about one-tenth of a percent. Nasdaq futures are down about three-quarters of a percent. The Dow is carrying the open on bank and defensive names; growth and chips are the lag.

That follows a mixed Monday. The Dow finished about four-tenths of a percent higher. The S-and-P was roughly flat to a touch lower, and the Nasdaq finished about four-tenths of a percent lower, with the semiconductor group down more than two and a half percent. Micron led the chip slide after China memory news, while Meta rallied on its Muse Wonder story and Microsoft finished higher on its Maia chip push.

Oil is pulling back this morning but still elevated. Brent crude is around one hundred five dollars a barrel, down about one and a half percent from Monday's settle near one hundred six dollars and sixty-five cents. U.S. crude is around ninety-two dollars, also lower. Traders are weighing Middle East supply risk against talk of more Russian diesel on the market. The ten-year Treasury yield is easing from recent highs, trading around five-point-two percent as oil cools and growth stocks give ground.

In early trading, chip names are still under pressure — Micron, Nvidia, A-M-D, and Intel among the names lower after overnight selling in Asia. Bank stocks are reacting to the morning prints, with the tape watching whether Goldman's beat can offset JPMorgan's miss. Healthcare names are in focus after UnitedHealth and Johnson and Johnson reported, and Visa is higher after China cleared a path for it to prepare a domestic bank-card clearing business.

Now let's get into those four things to watch.

First, the banks. This is the traditional kickoff to earnings season, and investors are reading these reports as a check on the consumer, trading, and dealmaking. JPMorgan posted net income of fifteen-point-three billion dollars, or five dollars and fifty-seven cents a share, up from a year ago — but that missed Wall Street's consensus near five dollars and ninety-three cents, and revenue also came in light of estimates. Trading and investment banking were still strong year over year; the miss is about the bar, not a collapse in the franchise. Goldman Sachs crushed estimates — diluted earnings of seventeen dollars and one cent a share, up thirty-nine percent from a year ago, on nearly eighteen-point-seven billion dollars of net revenue, up twenty-three percent. Goldman flagged that charitable contributions cut about a dollar off earnings this quarter, so the underlying beat is even larger. Wells Fargo earned one dollar and eighty-seven cents a share, up thirteen percent year over year, a slight beat on the bottom line, though revenue missed some estimates. Citigroup also reported this morning; the call is later today. Bank of America and Morgan Stanley are on deck tomorrow, so this bank week is just getting started.

Second, chips and A-I. Monday's semiconductor selloff is extending into the open. China's ChangXin Memory, or C-X-M-T, progress on a denser DRAM design is still the hangover story for Micron and the memory complex, and overnight Asia sold chipmakers hard — Tokyo finished down nearly two percent, and South Korea's market was hit even harder on Samsung and S-K Hynix. Broader A-I infrastructure names are also weaker as investors debate spending returns, borrowing costs, and competition. That is why Nasdaq futures are the clear laggard even as the Dow points higher.

Third, oil. Brent is off Monday's highs but still above one hundred five. Geopolitics has not gone away — Saudi and Houthi risk is still in the mix — and U.S. comments about Russian diesel supply and the Iran conflict are part of today's tape. Energy names will trade that push and pull. For the broader market, cheaper oil overnight helps the rate story a touch, which is why yields are easing into the open ahead of Wednesday's inflation print.

Fourth, healthcare and the week ahead. UnitedHealth reported adjusted earnings of four dollars and sixty-nine cents a share and raised full-year adjusted guidance to at least twenty dollars and fifty cents. Johnson and Johnson posted sales of about twenty-five-point-four billion dollars, up about six percent, with adjusted earnings of two dollars and fifty-nine cents, and raised its full-year adjusted earnings outlook. Those are big-cap healthcare anchors on a day when banks dominate the headlines. On the calendar, existing home sales print at ten o'clock Eastern, and several Fed speakers are out, including Governor Waller. Tomorrow is the September consumer price index — the main inflation test of the week — with producer prices on Thursday.

Here's what would make a lower open worse. Watch three things. First, if JPMorgan's miss turns into a broad bank selloff and the Dow's early strength fades. Second, if chip weakness spreads from memory into the rest of megacap tech and Nasdaq futures extend the drop. Third, if oil reverse-ramps higher again on Middle East headlines and pushes yields back up into the open.

So here's the picture heading into the open. Dow futures higher, Nasdaq futures lower, S-and-P roughly flat. Banks are the story of the morning with a clear split — Goldman strong, JPMorgan light of estimates. Chips are still the weight on growth. Oil is easing but not cheap. Inflation data later this week will decide whether this mixed open becomes a trend.

Quickly overseas. Tokyo finished down nearly two percent on the chip slide. Europe is mixed to mildly higher in morning trade.

We'll be back at lunch with how those bank prints are trading after the open and what still matters into the afternoon. Thanks for listening. I'm Trade and Ticker.