Dow Futures Rise 165 Pts; Big Bank Quarterly Earnings Due
By Peter Nurse
Investing.com -- U.S. stocks are seen opening marginally higher Friday, continuing the previous session's huge turnaround ahead of a slew of big bank earnings and the latest retail sales release.
At 07:00 ET (11:00 GMT), the Dow Futures contract was up 165 points or 0.6%, S&P 500 Futures traded 14 points or 0.4% higher, and Nasdaq 100 Futures climbed 20 points or 0.2%.
The main equity indices closed sharply higher Thursday after falling early in the day on the heels of a report showing inflation ran hotter than expected in September, suggesting the Federal Reserve is likely to continue with its aggressive rate-hiking plan.
The blue-chip Dow Jones Industrial Average ended more than 800 points or 2.8% higher, while the broad-based S&P 500 gained 2.6%, and the tech-heavy Nasdaq Composite ended 2.2% higher.
The third quarter earnings season continues Friday, with a number of the country’s major banks due. There are hopes a solid quarter can boost sentiment, rather like it did in the previous reporting period.
JPMorgan Chase (NYSE: JPM ), Wells Fargo (NYSE: WFC ), Morgan Stanley (NYSE: MS ), and Citigroup (NYSE: C ) are all scheduled to report before the bell, and these results will give investors a sense for what rising interest rates and inflation are doing to the nation's biggest lenders.
UnitedHealth (NYSE: UNH ) is also expected to report third quarter numbers, with the health insurer's costs, particularly those related to COVID-19, squarely in focus.
Beyond Meat (NASDAQ: BYND ) stock fell sharply premarket after the faux-meat maker slashed its annual revenue forecast due to rising inflation and said it was cutting about 200 jobs or 19% of its total workforce.
U.S. retail sales data are due at 08:30 ET (12:30 GMT) and should provide clues on how the aggressive Fed rate hikes are impacting consumer demand. The latest consumer sentiment figures from the University of Michigan are also due at 10:00 ET (14:00 GMT).
Oil prices weakened Friday and look set to post a weekly loss after a spike in China's COVID-19 cases and a bigger-than-expected build in U.S. crude inventories increased concerns over global demand.
COVID cases persist in China, the world's largest importer, including in Shanghai, the country's financial capital, threatening new lockdowns, which could severely crimp demand.
Additionally, official data from the U.S. Energy Information Administration showed that crude inventories grew by 9.9 million barrels last week, much more than expected.
By 07:00 ET (11:00 GMT), U.S. crude futures traded 1.1% lower at $88.16 a barrel, while the Brent contract traded 0.9% lower at $93.73. Both contracts are down over 4% this week.
Additionally, gold futures fell 0.9% to $1,661.70/oz, while EUR/USD traded 0.3% lower at 0.9741.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.
Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb
Drop an image here or