Stocks

Futures slip after mixed results from big banks By Reuters

© Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., January 12, 2022. REUTERS/Brendan McDermid

By Bansari Mayur Kamdar and Shreyashi Sanyal

(Reuters) – U.S. stock index futures edged lower on Friday as big lenders including JPMorgan and Wells Fargo (NYSE:) kicked off the fourth-quarter earnings season with a mixed batch of results, while big technology companies extended declines after a bruising selloff.

JPMorgan Chase & Co (NYSE:) tumbled 3.0% in premarket trading on reporting weaker performance at its trading arm, even as it beat earnings expectations for the fourth quarter.

Wells Fargo & Co, on the other hand, gained 1.8% after posting a greater-than-expected rise in fourth-quarter profit.

Asset manager BlackRock Inc (NYSE:) posted a fourth-quarter profit above estimates. However, its shares fell 0.1%.

Year-over-year earnings growth from companies was expected to be lower in the fourth quarter compared with the first three quarters but still strong at 22.4%, according to IBES data from Refinitiv.

The S&P 500 financial sector is up nearly 6% since the start of this year, outperforming the S&P 500, amid expectations of banks benefiting from interest rate hikes by the Federal Reserve and firming Treasury yields.

The financial sector has also benefited from a shift to economically sensitive sectors from growth sectors such as technology and consumer discretionary.

Megacap growth companies including Apple Inc (NASDAQ:), Amazon.com Inc (NASDAQ:), Microsoft (NASDAQ:), Tesla (NASDAQ:) and Meta fell up to 0.6% a day after a selloff triggered by multiple Fed speakers who put talks about inflation and interest rate hikes in focus.

At 7:11 a.m. ET, were down 49 points, or 0.14%, were down 8 points, or 0.17%, and were down 44.25 points, or 0.29%.

U.S. casino operators Las Vegas Sands (NYSE:), MGM Resorts (NYSE:), Wynn Resorts (NASDAQ:) and Melco Resorts advanced between 3.5% and 10.3% after Macau’s government capped the number of new casino operators allowed to operate to six with an operating period of up to 10 years.

Investors will be eyeing retail sales data later in the day, with analysts expecting it to remain unchanged in December after a 0.3% increase in November.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button