Futures dip as big banks kick off earnings season
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[October 12, 2017]
By Sruthi Shankar
(Reuters) - Futures pointed to a slightly
lower open on Thursday, with JPMorgan reporting its quarterly results,
kicking off the earnings season in earnest.
* JPMorgan <JPM.N>, the biggest U.S. bank by assets, dropped 0.40
percent after posting a rise in better-than-expected quarterly profit,
but a slump in bond trading clouded its loan growth and benefits from
higher interest rates.
* Wall Street banks have already warned of lower trading revenue, but
investors will watch for guidance from executives. Citigroup <C.N>,
which reports later in the day, was down 0.59 percent.
* Bank of America <BAC.N> and Wells Fargo <WFC.N>, scheduled to report
earnings on Friday, were also down.
* With the S&P 500 up 14 percent in 2017, investors are betting on
strong earnings growth across the S&P 500.
* Also on tap is a report on producer prices for September, coming as
Federal Reserve policymakers debate about stubbornly-low inflation as
they decide on when to raise interest rates next.
* The Labor Department report at 8:30 a.m. ET (1230 GMT) is expected to
show the producer price index rose 0.4 percent in September, after
rising 0.2 percent in August.
* However, the more crucial reading of inflation will come from consumer
price data on Friday. Many analysts have warned the data will be muddied
by recent hurricanes.
* The economic data also comes as the hunt for Janet Yellen's successor
to chair the Fed gathers steam.
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Traders work on the floor of the New York Stock Exchange (NYSE) in
New York, U.S., September 26, 2017. REUTERS/Lucas Jackson
* Reports on Wednesday that Fed Governor Jerome Powell, seen as a safe
pick for financial markets, was being pushed as a successor helped Wall
Street close at fresh record highs.
* Powell and fellow governor, Lael Brainard, are scheduled to speak
later in the day.
* Among stocks, AT&T fell more than 1 percent after the company said its
third-quarter results took a hit from the string of hurricanes.
* J.Jill plunged 39 percent after the women's fashion retailer slashed
its third-quarter forecast.
Futures snapshot at 7:04 a.m. ET:
* Dow e-minis were down 19 points, or 0.08 percent, with 12,419
contracts changing hands.
* S&P 500 e-minis were down 3.75 points, or 0.15 percent, with 75,087
* Nasdaq 100 e-minis were down 1 points, or 0.02 percent, on volume of
(Reporting by Sruthi Shankar in Bengaluru; Editing by Savio D'Souza)
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