Stock futures fall as big banks report earnings

Stock futures fell on Friday as some of America’s biggest banks reported earnings.

Futures for the Dow Jones industrial average fell 53 points, or 0.15%, while S&P 500 futures fell 0.3%. Nasdaq 100 futures fell 0.6%.

Bank of America reported better-than-expected fourth-quarter earnings, but shares were flat in the premarket.

JPMorgan Chase, meanwhile, reported earnings that beat expectations, but the bank warned it would set aside more cash to cover loan losses as a “mild recession” was its “central case”. The stock fell more than 2%. Wells Fargo shares also fell 2% after the bank reported its quarterly figures.

Delta Air Lines reported revenue and earnings that beat estimates for the final quarter of 2022. However, the stock fell more than 5% in the premarket.

Investors await these results to get more insight into the health of the economy.

“As the tug-of-war intensifies among analysts around the prospect of a recession and deepening recession, banks’ earnings reports, along with their guidance, can help clarify how businesses and consumers are managing,” Quincy said. Crosby is Chief Global Strategist at LPL Financial.

The moves followed a positive day for the three major indices. The Nasdaq Composite notched its fifth straight day of gains — its first since July. Stocks rose broadly after December’s CPI report showed prices fell 0.1% in November. Although prices rose at a 6.5% pace from a year earlier, the results raised hopes that the Federal Reserve will soon reduce its rate hikes.

The Dow Jones Industrial Average added 216.96 points, or 0.64%. The S&P 500 and Nasdaq Composite rose 0.34% and 0.64%, respectively.

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Stocks head into a winning week on pace for the Nasdaq and S&P for their best weekly performance since November. The Nasdaq was up 4.09% at Thursday’s close. The S&P advanced 2.26%, while the Dow added 1.66%.

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