Stock futures trade lower as banks report earnings

JPMorgan Chase reported better-than-expected results. Citigroup earnings per share were also better than expected, while Wells Fargo reported a net loss of $2.4 billion.

U.S. equity futures are trading lower heading into the Tuesday Wall Street session.

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The S&P 500 index is suggesting a dip of 0.24 percent after a Labor Department report showing U.S. consumer prices increased 0.6% in June, after three months of declines. A big jump in gasoline prices accounted for over half of the gain.

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A trio of big financial names reported results. JPMorgan Chase reported better-than-expected results. Citigroup earnings per share were also better than expected, while Wells Fargo reported a net loss of $2.4 billion.

Delta Air Lines Inc. booked $3.2 billion in costs due to disruptions caused by COVID-19 during the three months through June and said business will take years to mount a sustainable recovery.

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Shares fell in Asia on Tuesday as skepticism set in about the recent upward momentum in global markets given rising confirmed coronavirus cases and percolating tensions between the U.S. and China.

The White House’s decision to reject nearly all Chinese maritime claims in the South China Sea added to investor jitters. The world’s two largest economies have been sparring over everything from the pandemic to human rights.

U.S. futures dipped on a Reuters report that China's Foreign Ministry was going to impose sanctions on Lockheed Martin over U.S. arm sales to Taiwan.

Japan's benchmark Nikkei sank 0.9 percent, Hong Kong's Hang Seng tumbled 1.1 percent as reports of locally transmitted coronavirus cases prompted authorities to tighten precautions against the pandemic. China's Shanghai Composite lost 0.8 percent.

One indicator of how bad the regional damage could get came from the advance estimate of Singapore’s gross domestic product, or GDP, for the second quarter. It showed a 12.6 percent year-on-year contraction, confirming Singapore’s worst recession ever.

In Europe, London's FTSE declined 0.5 percent, Germany's DAX fell 1.6 percent and France's CAC dropped 1.8 percent.

Wall Street is getting a painful reminder of the threat the pandemic poses to the economy, as reopenings bring on fresh spikes in coronavirus cases.

TickerSecurityLastChangeChange %
I:DJIDOW JONES AVERAGES27433.48+46.50+0.17%
SP500S&P 5003351.28+2.12+0.06%
I:COMPNASDAQ COMPOSITE INDEX11010.982553-97.09-0.87%

On Monday, the S&P 500 fell 0.9 percent, with all the losses accumulating in the last hour of trading after California said it will extend closures of bars and indoor dining across the state, among other restrictions.

Tech losses helped drag the Nasdaq composite down 2.1 percent, while the Dow Jones Industrial Average squeaked out a gain of less than 0.1 percent.

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Benchmark U.S. crude lost 38 cents to $39.72 a barrel. It fell 1.1 percent to $40.10 per barrel on Monday. Brent crude, the international standard, fell 29 cents to $42.43 per barrel.

The Associated Press and FOX Business' Jonathan Garber contributed to this article.