US STOCKS-Futures slip as bond yields rise, BofA up on strong consumer lending

Most megacap growth stocks edged lower as the benchmark 10-year Treasury yield rose 2.866%, its highest since December 2018. However, Tesla Inc rose 0.8% as the electric automaker began preparing to reopen its Shanghai plants as the city speeds up efforts to get back to normal after a nearly three-week COVID shutdown.

U.S. stock index futures dipped on Monday as Treasury yields continued to rise in expectation of a tighter monetary policy, while Bank of America wrapped up earnings from Wall Street lenders with a better-than-expected quarterly profit. Bank of America Corp, the second-largest U.S. bank by assets, edged 1% higher in premarket trading after recording a strong growth in its consumer lending business.

Market response to first-quarter bank earnings have been mixed as JPMorgan Chase & Co, Goldman Sachs Group Inc and Citigroup Inc combined put aside $3.36 billion in credit loss reserves due to risks from the Ukraine war and rising inflation. Overall, analysts expect aggregate annual S&P 500 earnings growth of 6.3%, as of last week, less optimistic than the 7.5% growth projected at the start of the year, according to Refinitiv data.

Companies including Netflix, Tesla Johnson & Johnson and International Business Machines are set to report this week. Most megacap growth stocks edged lower as the benchmark 10-year Treasury yield rose 2.866%, its highest since December 2018.

However, Tesla Inc rose 0.8% as the electric automaker began preparing to reopen its Shanghai plants as the city speeds up efforts to get back to normal after a nearly three-week COVID shutdown. Data earlier showed China's economy slowed in March despite better-than-expected first-quarter growth numbers, worsening an outlook already clouded by COVID-19 curbs and the Ukraine war.

There was little hope of peace in Ukraine, with Russia hitting hundreds of military targets in Ukraine overnight, destroying command posts with air-launched missiles. At 07:06 a.m. ET, Dow e-minis were down 49 points, or 0.14%, S&P 500 e-minis were down 12.25 points, or 0.28%, and Nasdaq 100 e-minis were down 51.25 points, or 0.37%.

Twitter shares were up 4.4% after the micro-blogging platform adopted "poison pill" on Friday to restrict Tesla CEO Elon Musk from raising his stake to beyond 15% for a one-year period. Didi Global Inc slumped 18.7% after the Chinese ride hailing giant said it will hold an extraordinary general meeting on May 23 to vote on its delisting plans in the United States.