Stock futures were little changed ahead of earnings from major banks on Thursday

Equity futures were muted early Thursday morning as investors awaited quarterly results from America’s biggest banks.

Dow Jones Industrial Average futures traded flat. S&P 500 futures edged higher while Nasdaq 100 futures added 0.12%.

In regular trading on Wednesday, the Dow Jones advanced about 344 points, or 1%. The S&P 500 and Nasdaq Composite rose 1% and 2% respectively, each posting a three-day losing streak as investors shrugged off the latest CPI report, which showed levels of inflation not seen since. nineteen eighty one.

The reversal came after an initial batch of quarterly results from companies including Delta, Fastenal and BlackRock came in better than expected. Investors are eager to see how well companies have managed rising inflationary pressures.

Meanwhile, JPMorgan shares shed more than 3% on Wednesday after the company recorded a $902 million charge for building up credit reserves for anticipated loan losses and $524 million in credit losses. market upheavals related to Russia.

Yet despite Wednesday’s rally, all major averages are still in the red for the week. The Dow and Nasdaq are down more than 0.4%, while the S&P broad market is down almost 0.1%.

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“Given the extreme level of the geopolitical crisis [and] Fed’s most pronounced pivot, the market has been resilient,” said Sylvia Jablonski, CEO and Chief Investment Officer at Defiance ETFs. to go. We’ll have to see how earnings go – how much companies are talking about inflation, supply chain issues impacting margin and outlook for the rest of the year.”

“I think earnings will once again exceed expectations,” she added. “If that happens, we could see a reversal of these bearish daily trends.”

Beginning at 7 a.m. Thursday, Wells Fargo, Goldman Sachs, Morgan Stanley and Citigroup will release their first-quarter results. Investors will be watching how banks weathered the macroeconomic headwinds during the quarter, particularly the flattening of the yield curve.

JPMorgan’s experience doesn’t necessarily bode well for them, but there are still good signs for its Wall Street rivals. The firm’s trading desks successfully capitalized on the market volatility created by the conflict in Ukraine: the bank’s fixed income and equity trading generated approximately $1.3 billion in more than analysts had expected.

JPMorgan also saw an increase in interest income on the back of loan growth and rising rates, which is a good sign for rival Wells Fargo. Wells has been chosen by analysts this year for its above-average sensitivity to rising rates.

“The bar is low for bank earnings with first-quarter earnings expectations down around 1%,” said Stephanie Lang, chief investment officer at Homrich Berg. “Breaking this low bar could send equities higher, the positive being net interest income, as interest rates have risen. »

US Bancorp, PNC Financial and Ally Financial are also expected to report results on Thursday.

In economic data, retail sales, import prices and unemployment insurance claims are all set to be released at 8:30 a.m.

CNBC’s Hugh Son contributed reporting.

Stock futures were little changed ahead of earnings from major banks on Thursday

Source link Stock futures were little changed ahead of earnings from major banks on Thursday

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