Stock futures were lower on Thursday morning as traders anticipate earnings from major US banks.
Dow Jones Industrial Average futures lost 103 points, or 0.33%. S&P 500 futures were down 0.39% and Nasdaq 100 futures were down 0.41%.
Stocks fell during Wednesday’s session after June inflation data turned hotter than expected, hitting their highest level since 1981 and stoking fears that the Federal Reserve may have to raise interest rates by more aggressively in the coming months to drive down price increases.
The consumer price index rose 9.1% on the year in June, beating economists’ estimates of an 8.8% year-on-year increase. Core CPI, which excludes volatile food and energy prices, was 5.9%, also ahead of the 5.7% estimate.
Additionally, the Beige Book, released by the Fed on Wednesday, showed concerns of a coming recession amid high inflation.
The CPI report also had an impact on Treasuries, pushing the 2-year Treasury yield up nine basis points to around 3.138%, while the 10-year Treasury yield fell around 4 basis points to 2.919. A reversal of the two is a popular signal of a recession.
If the Fed says “it’s all on the table, all of a sudden you have to start pricing in a recession,” said Dan Nathan, director of RiskReversal Advisors, on the “Fast Money” show. from CNBC.
Earnings season continues Thursday with JPMorgan Chase and Morgan Stanley set to report before the bell on Thursday.
Weekly jobless claims and the June report on the Producer Price Index, which measures the prices paid to producers of goods and services, will also be released on Thursday. Both reports will provide a deeper insight into the economy.
Stock futures slip after Wednesday’s session as Wall Street awaits bank earnings
Source link Stock futures slip after Wednesday’s session as Wall Street awaits bank earnings