(Bloomberg) — S&P 500 futures were firm on Friday as major U.S. banks including JPMorgan Chase & Co. and Wells Fargo eased sentiment with better-than-expected third-quarter results.
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Bank of New York Mellon announced the bank’s third-quarter results with a profit that beat expectations, sending the stock higher in pre-market trading. JPMorgan rose about 2% premarket after announcing a surprise increase in net interest income, while Wells Fargo rose about 3% after beating profit expectations.
S&P 500 contracts were solid, but Nasdaq 100 futures were down 0.3%. This comes after Tesla shares fell 6% pre-market after the launch of its CyberCab robot taxi was seen as having been skimped on details.
Ulf von Rotberg, equity strategist at J. Safra Sarasin Bank, raised his targets for the S&P 500 index in the coming quarters, saying, “Given the general improvement in the economic cycle since early September, We expect there to be surprising upside potential for profits.”
Investors will be looking ahead to late Friday producers after Thursday’s data showed strong inflation trends while showing a spike in jobless claims and highlighting the challenges facing the Federal Reserve. The focus will be on price figures.
The swap market is pricing in about an 80% chance of a 25 basis point (bp) rate cut in November.
“The data is mixed and probably confusing the market,” said Justin Onukwusi, chief information officer at British wealth manager St. James’s Place. “This is a critical time for the Fed to rely on data, but the data is perhaps the least meaningful.”
In Europe, the Stoxx 600 stock index was unchanged. Investors in companies with exposure to China are awaiting a key weekend briefing from China’s finance minister on details of additional Chinese government spending to support the economy.
“The market was estimating a fiscal stimulus of 2 trillion yuan ($283 billion), so anything less than that would be disappointing,” said Benjamin Melman, chief investment officer at Edmond de Rothschild Asset Management. ” he said.
China’s CSI 300 index fell more than 3% this week, partially reversing last week’s 8.5% rise, and U.S.-listed Chinese stocks also fell in pre-market trading.
However, Bank of America strategist Michael Hartnett recommends buying weakness in Chinese stocks. Mark Moebius, a Goldman Sachs strategist and veteran investor, also expects emerging market stocks, which are heavily weighted toward China, to rise.
story continues
This week’s main events:
JPMorgan and Wells Fargo kick off earnings season for big Wall Street banks on Friday.
US PPI, University of Michigan Consumer Sentiment, Friday
Fed’s Laurie Logan, Austan Goolsby and Michelle Bowman speak on Friday
The main movements in the market are:
stock
S&P 500 futures were little changed as of 7:17 a.m. New York time.
Nasdaq 100 futures fell 0.3%
Dow Jones Industrial Average futures little changed
Stoxx European 600 rose 0.1%
MSCI World Index little changed
currency
Bloomberg Dollar Spot Index little changed
The euro was almost unchanged at $1.0931.
The British pound remained unchanged at $1.3059.
The Japanese yen fell 0.4% to 149.11 yen to the dollar.
cryptocurrency
Bitcoin rises 2.2% to $61,072.14
Ether rose 1.9% to $2,410.99
bond
The 10-year Treasury yield rose 4 basis points to 4.10%.
Germany’s 10-year bond yield rose 4 basis points to 2.30%.
The UK 10-year bond yield rose 3 basis points to 4.24%.
merchandise
West Texas Intermediate crude oil fell 0.9% to $75.17 a barrel.
Spot gold rose 0.4% to $2,640.10 an ounce.
This article was produced in partnership with Bloomberg Automation.
–With assistance from Divya Patil.
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