Bank earnings loom large; LVMH sales underwhelm - what’s moving markets Scott Kanowsky Tue, October 13, 2026 at 4:29 AM EDT 5 min read MC.PA -2.05% ^DJI +0.38% ^GSPC -0.06% ^NDX -0.71% CL=F -1.85% Investing.com - Futures linked to the main U.S. stock indices are mixed, as investors parse through worries around a fragile artificial intelligence trade and a widening Middle East conflict. A slew of major Wall Street bank earnings, which will unofficially kick off the latest quarterly earnings season, looms large. Sales from luxury behemoth LVMH come up short of expectations, casting a pall over the wider high-end goods sector.
Before you buy NVIDIA: our AI model's stock picks are beating the market by 120%+. See the list now »
U.S. stock futures hovered around both sides of the flatline on Tuesday. By 02:48 ET (06:48 GMT), the Dow futures contract had risen by 225 points, or 0.4%, S&P 500 futures had dipped by 6 points, or 0.1%, and Nasdaq 100 futures had fallen by 237 points, or 0.8%.
The main U.S. averages were mixed on Monday, with traders weighing the AI jitters, a new spike in oil prices and underwhelming returns from fashion giant LVMH.
This week, along with the quarterly corporate reporting period kicking into gear, markets are also preparing for the release of key U.S. inflation data which could factor into how the Federal Reserve approaches interest rate policy over the rest of 2026.
U.S. chipmakers came under particular pressure to begin the trading week, with a tracker of the industry slipping by 2.7%.
Tech stocks in South Korea were later hit hard as well. The losses partially stemmed from reports of advances made by China's ChangXin Memory Technologies, which fueled worries that the gap in the AI race between U.S. firms and their Chinese counterparts might be narrowing.
Concerns had already been swirling around the AI trade, sparked by controversy around revenues at ChatGPT-maker OpenAI.
What seems clear is that demand for AI remains solid. But the trajectory of heavy debt-driven spending by these companies, and the eventual returns from AI progress, are still unclear.
Shares of LVMH fell in early Paris trading on Tuesday after the luxury and fashion titan posted third-quarter sales that failed to live up to expectations.
Dampened by a sharp slide in demand in its key Chinese market, LVMH reported a 1% rise in organic sales from a year ago to 18.5 billion. That was below estimates for growth of 1.3%, according to a Visible Alpha consensus cited by Reuters.
Not finding the right stocks? Our AI's list of investor-grade stock picks for October just dropped »
Organic sales at its fashion and leather goods unit, which accounts for roughly half of the group's overall revenue, slipped by 5%, versus an anticipated drop of 1.8%. Sales expansion at LVMH's watches and jewelry division also slowed.
Meanwhile, sales in Asia, where China is the dominant luxury market, decreased 5% year-on-year. A tax crackdown on wealthy individuals in China has weighed on luxury demand, adding to problems for an industry grappling with increased costs due to the Iran war.
On the earnings calendar later today, the focus will be on earnings from a string of large U.S. banks, including JPMorgan Chase, Goldman Sachs, Wells Fargo and Citigroup.
The results will be the first in a parade of Wall Street returns this week, signaling the start of the quarterly earnings season. Bank of America, Morgan Stanley, and BlackRock are due to report on Wednesday.
"[B]ased on the remarks from [management] teams during September sell-side conferences, [third-quarter] earnings should be OK versus print expectations, although there is concern about rising yields negatively impacting [net interest margins] and bond portfolios while capital markets-linked fee revenue could get hurt by stalled issuance (including IPOs) and market volatility," analysts at Vital Knowledge said in a note.
They added that residential mortgage-linked income is set to come under pressure as well.
In a separate note, analysts at Deutsche Bank said they expect broader S&P 500 earnings growth to come in at a record 34% in the third quarter, adding that "consensus is again embedding too much of a slowdown, leaving scope for another quarter of above-average beats."
Oil prices fell on Tuesday after Russia said its diesel exports may exceed volumes announced under a supply deal with the U.S., countering fears over Gulf supply flows.
Brent oil futures fell 1.5% to $105.09 a barrel by 03:54 ET, while West Texas Intermediate crude futures dipped 1.8% to $92.08 a barrel. Both contracts climbed on Monday, with Brent settling at its highest level since September 15.
Oil's declines came after Russian Deputy Prime Minister Alexander Novak said late Monday that Russia will be able to return diesel exports to levels above those outlined by U.S. President Donald Trump in a supply deal with Moscow. On Friday, Trump said his administration had temporarily lifted sanctions on Russian fuel.
Trump also unveiled an "energy ceasefire" between Russia and Ukraine, although skepticism surrounds the announcement, especially after reports that Russia has struck Ukrainian energy targets since Trump's statement.
The outlook is also murky for oil supplies out of the Gulf following attacks on Saudi Arabia's international airport by Iran-backed Houthi rebels and strikes on tankers in the Strait of Hormuz.
Bank earnings loom large; LVMH sales underwhelm - what's moving markets
IMF holds 2027 global growth forecast at 3.4% as war, debt risks mount
