Stock futures flat as weak JPMorgan results offset China
stimulus boost
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[January 15, 2019]
By Medha Singh
(Reuters) - U.S. stock futures pointed to a
flat start on Tuesday, with an early boost from hopes of more Chinese
stimulus for the economy fading following poor results from JPMorgan.
JPMorgan Chase & Co <JPM.N> fell 2.1 percent in premarket trading after
the biggest U.S. lender by assets reported a lower-than-expected rise in
quarterly profit and revenue, hurt by weakness in bond trading.
Wells Fargo & Co <WFC.N>, due to report results later in the morning,
slipped 0.9 percent.
UnitedHealth Group <UNH.N> kicked off the earnings season for health
insurers, reporting a better-than-expected quarterly profit, helped
mainly by growth in its services business. Shares of the company,
however, were little changed.
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At 7:16 a.m. ET, Dow e-minis <1YMc1> were up 0.03 percent. S&P 500
e-minis <ESc1> were up 0.09 percent and Nasdaq 100 e-minis <NQc1> were
up 0.34 percent.
Futures were up more than half a percent after Chinese officials came
out in force hinting at more stimulus in the near term for their slowing
economy especially after surprising contractions in China's December
trade and factory activity.
Providing some relief over the trade front, U.S. President Trump said on
Monday he thought a trade deal with China was possible.
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Traders work on the floor of the New York Stock Exchange (NYSE) in
New York, U.S., January 10, 2019. REUTERS/Brendan McDermid
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Concerns about the impact of trade war on global growth along with rising
interest rates have taken a toll on fourth-quarter corporate profit
expectations.
Analysts now expect S&P 500 earnings to grow 14.3 percent in the fourth quarter,
much lower than the 20.1 percent growth forecast in October, according to IBES
data from Refinitiv.
Despite declines in the past two days, the benchmark S&P 500 remains nearly 10
percent higher from its December lows. The index is about 14 percent away from
its September record close.
Investors will keep an eye on the outcome of the vote on British Prime Minister
Theresa May's Brexit deal, a decision which will define Britain's departure from
the European Union and set the course for the country's economy.
Voting is expected to start at about 1900 GMT, 2:00 p.m. ET.
(Reporting by Medha Singh in Bengaluru; Editing by Anil D'Silva)
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