Wall Street Futures Fall as Big Bank Earnings are Assessed
Futures Tracking Wall Street’s Main Indexes Fall
Futures tracking Wall Street’s main indexes fell on Friday as investors assessed earnings from big U.S. banks, while Treasury yields eased following a spike in the previous session. This decline comes after a period of gains for the stock market.
Big U.S. Banks’ Earnings
JPMorgan Chase, the biggest U.S. bank, reported a jump in third-quarter profit due to higher interest rates boosting its income from loans. This positive news caused the bank’s shares to rise. Wells Fargo also gained from customers paying higher interest on loans, resulting in a boost in profit. Citigroup is set to report its quarterly numbers later in the day.
BlackRock’s Rebound in Markets
BlackRock, the world’s largest asset manager, reported a 13% rise in third-quarter profit due to a rebound in markets. However, the company’s shares remained flat despite the positive results.
Rising Earnings Estimates
Rob Swanke, senior market strategist at Commonwealth Financial Network, noted that even though market prices have fallen in recent weeks, earnings estimates for the year ahead have continued to rise. This indicates optimism in the market despite recent volatility.
Expectation of Volatility in U.S. Banks’ Stock Prices
Options traders are anticipating larger-than-usual post-earnings stock price swings for some U.S. banks, despite signs of cooling volatility in broader markets. This suggests that there may be some uncertainty surrounding the future performance of these banks.
UnitedHealth Beats Profit Estimates
UnitedHealth, a healthcare conglomerate, advanced 2.5% after beating third-quarter profit estimates. The company’s lower-than-expected medical costs contributed to this positive outcome.
Yields Ease and Stock Indexes on Track for Weekly Gains
Yields, which had risen due to consumer inflation data and weak demand in the auction of U.S. 30-year bonds, eased on Friday. The three main U.S. stock indexes were on track to register gains for the week.
Comments from Fed Bank of Philadelphia President
Investors will be paying attention to comments from Fed Bank of Philadelphia President Patrick Harker later in the day. His insights could provide further guidance on the direction of interest rates and the overall economy.
University of Michigan’s Consumer Sentiment Index
A preliminary estimate of the University of Michigan’s October Consumer Sentiment Index is due at 10 a.m. ET. This data will provide insights into consumer confidence and sentiment, which can influence market behavior.
Stock Movements and Energy Companies
Energy companies, including Exxon Mobil, Chevron, Callon Petroleum, and Occidental Petroleum, saw their stocks rise in response to a nearly 4% increase in oil prices. Dollar General, a discount store retailer, also experienced a significant gain after bringing back its former chief executive to replace the current CEO. On the other hand, Boeing shares declined after the plane-maker and Spirit AeroSystems expanded the scope of their ongoing inspections of a production defect affecting 737 Max 8 aircraft.
The conflict in Israel is also being monitored by investors, as the country’s military has called for civilians in Gaza City to relocate due to an expected ground invasion after a devastating attack by the militant group Hamas.
In conclusion, Wall Street futures have fallen as investors digest big bank earnings. Despite these declines, there are still positive indicators in the market, such as rising earnings estimates and overall weekly gains in stock indexes.
