US stock futures on Friday as big US banks got earnings season underway and investors weighed the likely impact of a hot inflation print on Federal Reserve policy.
Dow Jones Industrial Average futures (YM=F) hovered slightly below the flatline, paring deeper premarket losses as big bank financial updates rolled in. S&P 500 futures (ES=F) fell roughly 0.1%, and contracts on the tech-heavy Nasdaq 100 (NQ=F) were off 0.3%, after closing out Thursday with small losses.
Investors were combing through quarterly results from big Wall Street banks — the traditional starting gun for earnings season. In focus is the potential impact of the Fed’s pivot to rate cuts on lending margins, and so on profit.
JPMorgan Chase (JPM) posted a drop in profit despite a strong investment banking performance, thanks to provisions for credit losses. Its stock rose 1% in premarket trading. Meanwhile, Wells Fargo (WFC) shares rose almost 4%, after it reported a drop in net interest income and profit.
This year’s stock rally lifted the value of assets under management at some institutions, boosting income from charges. BlackRock’s (BLK) assets under management hit a record high for the third straight quarter, while BNY Mellon (BK) posted a 16% jump in profit as net interest income rose.
At the same time, investors continue to parse the latest consumer inflation data, which failed to clearly signal the Fed’s next move on interest-rate cuts.
Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards
The reading, alongside data showing rising unemployment claims, underscored the challenge facing policymakers as they try to nail a “soft landing” for the economy. Given that, an update on wholesale prices for September is likely to be closely watched for when it lands Friday morning.
Also is focus is Tesla’s (TSLA) robotaxi event late Thursday, where CEO Elon Musk revealed a larger Robovan alongside the $30,000 Cybercab. The EV maker’s shares fell 6% amid some disappointment it didn’t offer more concrete details on its strategy to become a force in AI and autonomous driving.