Stock futures rose Friday as investors turned their attention to big bank earnings after the major averages staged a historic turnaround rally.
Futures tied to the Dow Jones Industrial Average increased 190 points, or 0.63%. S&P 500 futures gained 0.69%, and Nasdaq 100 futures ticked up 0.66%.
JPMorgan Chase and Wells Fargo gained after revenue topped expectations. Morgan Stanley reported a profit miss, sending shares down more than 2% in premarket trading. Citigroup also reported a miss in third-quarter profits.
Dow member UnitedHealth also reported results that beat Wall Street expectations on Friday, sending shares higher.
The outlook for this earnings season is not good. Profit for S&P 500 companies increased a measly 2.4% in the third quarter, according to the latest analyst estimates collected by FactSet, the worst growth since third quarter 2020, the heart of the pandemic.
When the third quarter began, earnings growth was expected to be 10% for the period, but rising costs and interest rates have eaten away at companies’ bottom lines. Leading up to the start of this reporting season, 65 S&P companies have issued negative guidance, compared to just 41 giving positive outlooks, FactSet data shows.
The reports come a day after the market staged a massive comeback. The Dow ended Thursday’s session up 827 points after being down more than 500 points at the intraday low. The S&P 500 rose 2.6% to break a six-day losing streak, and the Nasdaq Composite jumped 2.2%.
The moves…
