Stock futures edge lower as banks report earnings

U.S. stock futures edged lower ahead of the open Friday amid key earnings reports from financial heavyweights.

Futures tied to the S&P 500 (^GSPC) down 0.9%, while futures on the Dow Jones Industrial Average (^DJI) were lower by 0.7%. Contracts on the technology-heavy Nasdaq Composite (^IXIC) declined by roughly 1.0%.

Bond prices ticked up. The yield on the benchmark 10-year U.S. Treasury note fell to 3.46% from 3.5% on Wednesday. The dollar index showed little change.

On the earnings front, JPMorgan (JPM) posted better-than-expected fourth-quarter earnings as CEO Jamie Dimon said the the U.S. economy “remains strong.” JPMorgan said earnings for the three months ending in December were pegged at $11.1 billion, or $3.57 per share, up 7.2% from the same period last year.

Bank of America (BAC) reported fourth-quarter earnings that showed the bank’s revenue benefited from higher interest rates. Bank of America reported revenue of $24.5 billion in the quarter, topping estimates of $24.2 billion. That was 11% higher from the year-ago quarter.

Wells Fargo (WFC) also posted quarterly earnings that beat expectations, while revenue came in below Wall Street forecasts. The financial heavyweight reported fourth-quarter earnings of 67 cents a share on revenue of $19.7 billion, compared with year-earlier earnings of $1.38 a share on revenue of $20.9 billion.

BlackRock (BLK) posted fourth-quarter profit dropped 23%, while reporting net income of $1.26 billion in the same period a year earlier. Citigroup (C) posted net income of $2.5 billion, or $1.16 per diluted share, which slightly topped expectations for $2.3 billion, or $1.14 per share.

Goldman Sachs (GS) said its consumer lending business has lost more than $3 billion since 2020. This comes ahead of their fourth quarter earnings that’s scheduled to be released next week.

Stocks finished higher on Thursday after investors digested fresh inflation data that showed prices increased at a slower annual rate in December, a report that was in line with expectations from economists. Consumer-price inflation slowed to 6.5% in…


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