Market Volatility Declines Ahead Of Big Earnings Release

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) fell around 6.2% to 24.76 on Monday.

US stocks recorded sharp gains on Friday following the release of several economic reports. Retail sales rose 1% month-over-month in June, beating market estimates of a 0.8% gain, while the University of Michigan consumer sentiment index climbed to 51.1 in July versus a record low level of 50 in the previous month.

Financial stocks moved sharply higher on Friday after Citigroup Inc. C reported better-than-expected results for its second quarter on Friday. Citigroup shares jumped 13%, while Bank of America Corporation and The Goldman Sachs Group, Inc. GS shares gained 7% and 4.4%, respectively on Friday. Bank of America reported downbeat earnings for its second quarter on Monday.

Goldman Sachs, meanwhile, is due to release quarterly earnings before the opening bell today.

Investors will now keep an eye on the US Federal Reserve decision, due later this month, which is expected to result in sharp volatility in the equity markets.

The NAHB housing market index is also scheduled for release today, with analysts expecting the index dropping to 66 in July from 67 in the prior month.