Stocks – U.S. Futures Set for Losses Despite JPMorgan Beat

This post was originally published on this site
https://i-invdn-com.akamaized.net/news/LYNXNPEB8R0JA_M.jpg
© Reuters. © Reuters.

By Peter Nurse

Investing.com – Wall Street is set to open lower Tuesday, as investors bank recent gains and look to the start of the earnings season with a degree of caution despite an impressive lead from JPMorgan Chase (NYSE:).

Futures for the were trading 2 points, or 0.1%, lower by 07:15 ET (12:15 GMT), futures for the NASDAQ were 11 points, or 0.1%, lower, while the DJI futures contract outperformed, up 4 points, or 0.1%.

This push back comes after the major U.S. equity indices posted new highs on Monday. The broad-based cash index gained 22.78 points, or 0.7%, to close at 3288.13, a new high. The technology-heavy also ended the day at a record, climbing 95.07 points, or 1%, to 9273.93. The added 83.28 points, or 0.3%, to close at 28,907.05, just 0.2% below last week’s record high.

All eyes now are on the start of the U.S. reporting season, starting today with banking giants JPMorgan Chase (NYSE:), Citigroup (NYSE:) and Wells Fargo (NYSE:). The banks are often taken as a rough proxy for the health of the broader economy, and are thus likely to set the tone of the overall earnings season.

JPMorgan (NYSE:) impressed with its fourth-quarter release, with earnings per share coming at $2.57, compared with $2.35 expected, and revenue was $29.21 billion, above the expected $27.96 billion. Its shares climbed 1.8% in premarket trading.

These banks have had to cope with the Federal Reserve cutting interest rates three times last year. Lower rates reduce what banks can charge on loans, but they also cut what they have to pay for deposits.

Still, any market pullback is unlikely to be severe as global economic sentiment remains healthy. There was a boost to this overnight as the U.S. revoked its decision, taken last summer, to call China a currency manipulator – just days before the two countries are set to sign phase one of a trade deal.

This phase one deal would prevent any further tit-for-tat tariffs and roll back some existing U.S. tariffs in Chinese goods, although it would leave many others still in place and will also not address major concerns about China’s treatment of intellectual property and its extensive subsidies for state-owned companies.

Elsewhere, crude oil bounced while gold futures lost ground as investors left the safe haven amid broadening optimism.

U.S. Crude Oil WTI Futures traded up 0.7% at $58.51 by 06:55 AM ET (11:55 GMT). International Brent Oil Futures also climbed 0.9% to $64.78. Gold futures for February delivery on New York’s COMEX fell 0.4% to $1,544.05.

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.

Add Comment