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U.S. stock futures were little changed on Friday, as investors await the first batch of big fourth-quarter earnings that will include reports from JPMorgan Chase & Co. and Bank of America Corp.
Shares of Tesla Inc.
TSLA,
fell in premarket trading after the company announced price cuts for its Model 3 and Model Y cars.
How are stock-index futures trading?
-
S&P 500 futures
ES00,
-0.65%
slipped 0.5 point to 4,003.25 -
Dow Jones Industrial Average futures
YM00,
-0.57%
rose 10 points at 34,329 -
Nasdaq 100 futures
NQ00,
-0.74%
fell 17 points, or 0.1%, to 11,518
On Thursday, the S&P 500
SPX,
rose 13.56 points, or 0.3%, to end at 3,983.17, the Dow Jones Industrial Average
DJIA,
climbed 216.96 points, or 0.6%, to finish at 34,189.97. The Nasdaq Composite
COMP,
advanced 69.43 points, or 0.6%, ending at 11,001.10.
What’s driving markets?
Corporate news is swinging into focus on Friday as JPMorgan Chase
JPM,
Wells Fargo & Co.
WFC,
Citigroup Inc.
C,
Bank of America
BAC,
BlackRock Inc.
BLK,
Delta Air Lines Inc.
DAL,
and UnitedHealth Group Inc.
UNH,
all report financial results.
Many investors are torn on what to expect. Some believe outlooks have already been cut enough and will open the door to better-than-expected results and stock gains, while others see lackluster results and downbeat forward guidance leading to further stock falls. Recession worries are also weighing on investors headed into those results.
Read: Why earnings season could be a ‘market-moving event’
But more economic data is also on the way Friday, a day after a report that showed the first inflation fall in more than two years. Stocks saw a choppy day of trading on the back of that, which to some was a sign investors had their hopes even higher for that ease in prices.
But it may help to build the view that the Federal Reserve may be done with jumbo interest rate hikes.
“According to fed fund futures, financial markets now see no more than a one-in-ten chance of another 50bp move in February, with a final 25bp hike in March not currently fully price in. What this does is confirm suspicions that the Fed will be done hiking rates sooner than most of its major peers, which is clearly providing some headwinds to the U.S. dollar,” said Matthew Ryan, head of market strategy at global financial services firm Ebury, in a note to clients.
Import prices for December will be released at 8:30 a.m. Eastern, followed by the preliminary January University of Michigan consumer sentiment index at 10 a.m. That report will also include one and five-year consumer inflation expectations.
And after slowing inflation data, investors are likely to focus more on what Fed officials have to say about the future pace of interest rate increases.
Stocks pushed higher Thursday after St. Louis Federal Reserve Bank President James Bullard said the probability of a soft landing for the economy has increased due to “encouraging” inflation data. He was followed by Philadelphia Fed President Patrick Harker, who said quarter-point moves would likely be appropriate going forward.
Harker will speak again on Friday at 10:20 a.m. Eastern, with Minneapolis Fed President Neel Kashkari just ahead of him at 10 a.m.
Across other markets, the U.S. dollar was down 0.6% against the Japanese yen
USDJPY,
The Bank of Japan stepped in to buy more bonds after the benchmark 10-year Japanese government bonds breached the 0.5% cap it set just under a month ago. The yield on the 10-year U.S. Treasury note
TMUBMUSD10Y,
was up 1 basis point to 3.456%.
Oil prices
CL.1,
were modestly higher.
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