Stock futures trade mixed ahead of bank earnings, Fed testimonial
U.S. equity futures are trading in a mixed way ahead of Federal Reserve Chairman Jerome Powell’s two-day testimony to Congress.
The main forward indices suggest a slight drop in the Dow Jones and a 0.4% gain in the Nasdaq.
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Powell will deliver the Fed’s semi-annual report on the economy to Congress. Investors will be listening for clues about monetary policy linked to rising inflation. Central bank officials have said they believe the price pressures will be short-lived.
A report released on Tuesday showed that consumer prices in June rose the most in 13 years.
WALL STREET IS NOT SO SR THAT INFLATION WILL BE TRANSITIONAL
The report adds to concerns that the Fed may consider withdrawing its low interest rate policies and cutting its bond purchases sooner than expected.
Traders will have another look at inflation when the Bureau of Labor Statistics releases wholesale price data for June. The overall PPI is expected to rise 0.6% month-over-month according to Refinitiv’s forecast, slightly behind the 0.8% increase in May. Year over year, prices paid by wholesalers are expected to jump 6.8%, from 6.6% in May.
The financial sector earnings parade continues on Wednesday with Bank of America, Wells Fargo, Citigroup, BlackRock and PNC Financial Services all posted ahead of the opening bell.
In Europe, the London FTSE fell 0.5%, the German DAX by 0.1% and the French CAC by 0.2%.
In Asia, the Japanese benchmark Nikkei 225 edged down 0.4%, the Hong Kong Hang Seng fell 0.6% and China’s Shanghai Composite fell almost 1.1%.
Parts of Japan are also seeing an increase in COVID-19 infections, stoking fears about the tens of thousands of athletes, dignitaries and others from some 200 countries entering the country for the Tokyo Olympics.
|Me: DJI||MEDIUM DOW JONES||34888.79||-107.39||-0.31%|
|I: COMP||NASDAQ COMPOSITE INDEX||14677.653559||-55.59||-0.38%|
On Tuesday, the S&P 500 fell 0.4% as most companies in the benchmark lost ground.
The pullback took major stock indexes slightly below record highs they set a day earlier.
The Dow Jones Industrial Average fell 0.3% to 34,888.79. The tech-rich Nasdaq slipped 0.4% to 14,677.65.
GOLDMAN SACHS PROFITS IN 2Q Q BEAT FORECAST; INCREASES THE DIVIDEND
Goldman Sachs fell 1.2% despite announcing the second-best quarterly profit in investment banking history. JPMorgan Chase fell 1.5% after giving investors a mixed report with solid earnings but falling income due to falling interest rates in the past three months.
Bond yields slipped to 1.40% from 1.42% on Tuesday night. Overall, yields followed a downward trend after rising sharply at the start of the year.
In energy trading, benchmark US crude fell 49 cents to $ 74.77 a barrel in electronic trading on the New York Mercantile Exchange. He earned $ 1.15 to $ 75.25 on Tuesday. Brent crude, the international standard, fell 49 cents to $ 76.00 a barrel.
The Associated Press contributed to this report.