Stock futures fall slightly as investors await big bank earnings

Stock futures were slightly lower at the start of premarket trading on Friday, as investors braced for the start of big bank earnings.

Futures contracts linked to the Dow Jones Industrial Average slipped 44 points, or 0.13%. S&P 500 futures just below the flatline while Nasdaq 100 futures fell 0.17%.

The overnight moves followed a positive day for all three major indices. The Nasdaq Composite snatched its fifth day of gains – a first since July. Stocks rose overall as December’s CPI report showed prices were down 0.1% from November. As prices rose at a 6.5% pace from a year earlier, the results bolstered hopes that the Federal Reserve may soon slow its rise.

The Dow Jones Industrial Average added 216.96 points, or 0.64%. The S&P 500 and Nasdaq Composite gained 0.34% and 0.64% respectively in regular trading.

The Nasdaq Composite is on course for its longest daily winning streak since July

Stocks are heading for a winning week, with the Nasdaq and S&P on course for their best weekly performance since November. The Nasdaq is up 4.09% through Thursday’s close. The S&P advanced 2.26%, while the Dow added 1.66%.

Eight of 11 sectors in the S&P 500 ended positive on Thursday, leading to strong energy upside in 2022. Consumer staples stocks lagged as the sector fell 0.79%.

Earnings season kicks off in full swing on Friday with results for shares in big banks JPMorgan Chase, Wells Fargo, Citigroup and Bank of America. Investors will be watching the releases, which should offer more information on the health of the economy and set the tone for earnings season.

“As the tug of war between analysts intensifies over the prospects of a recession – and the depth of a recession – banks’ earnings reports, coupled with their advice, should help clarify how businesses and consumers manage,” Quincy said. Krosby, chief global strategist of LPL Financial.

Delta Air Lines, BlackRock, UnitedHealth are also expected to report on Friday. Consumer sentiment data is expected later in the morning.

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