Stock futures were slightly lower early Friday as traders reviewed major bank earnings. S&P 500 futures dropped 0.1%, while Dow Jones Industrial Average futures gained marginally and Nasdaq-100 futures shed 0.4%. JPMorgan Chase and Wells Fargo were the first major financial firms to report third-quarter earnings, with JPMorgan Chase’s shares remaining flat and Wells Fargo rising by 2.5% in the premarket. Citigroup is also set to report its earnings on Friday. Alongside concerns about disappointing earnings and the possibility of another rate hike, investors are monitoring the ongoing Israel-Hamas war, which could potentially impact global oil supply and prices.
Nancy Tengler, chief investment officer at Laffer Tengler Investments, believes that investors may be overly pessimistic and expects earnings to surprise them positively. She anticipates that companies will be able to navigate the current challenges well. Tengler also expressed her belief that the stock market will end the year with a rally, led by the technology and industrials sectors. Traders are also eagerly awaiting preliminary consumer sentiment data for October on Friday.
Despite Thursday’s losses, the three major indexes are on track for weekly gains. The S&P 500 is up 0.9% for the week, the Dow is up nearly 0.7%, and the Nasdaq Composite is leading with a 1% increase. This would mark the third consecutive positive week for the Nasdaq and the second consecutive positive week for the S&P 500. The Dow is also set to break a streak of three straight weekly declines. Thursday’s losses were driven by the latest consumer price index report, which revealed stubborn inflation and pushed bond yields higher. CPI rose 0.4% in September and increased by 3.7% compared to the same period last year.
